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{
    "id": 1213821,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1213821/?format=api",
    "text_counter": 192,
    "type": "speech",
    "speaker_name": "Kitui Central, WDM",
    "speaker_title": "Hon. (Dr) Makali Mulu",
    "speaker": null,
    "content": "negotiating for, comes in shillings or we agree during negotiating so that we can fix the rate at that point so that if it in US$, we can say we are borrowing at a rate of one US$ to Ksh120 and should remain so for the remainder time of the loan repayment and processing. The second matter which is critical and it is important to mention so that the Members get to know, is the issue of non-performing loans. Currently, we are reporting non-performing loans of Ksh218.8 billion as of 30th June 2022. These are loans which the country has signed for and has already committed itself, but we are not using them. Non-performing loans are the ones which we have issues with in terms of repayment. They are worth a certain amount, but we are unable to repay. The major components of this loan is the one of Kenya Airways (KQ) and the Kenya Power Limited Company (KPLC). My Chairman has said that the amount payable through the Kenya Airways has moved from Ksh2.3 billion to Ksh14.7 billion because the Government guaranteed the said loan and is now expected to pay the loan on behalf of Kenya Airways because it has defaulted. As a House, we need to look at the issue of guaranteeing loans because if the institution which is taking the loan is unable to repay it at the end, the Government will pay from the Consolidated Fund. The other issue is on the commitment fee. This is the one that I was explaining. They are loans which we have taken, signed for and we are not drawing the loans to use as a country. If you look at the Financial Year 2021/2022, we spent Ksh1.49 trillion as commitment fee just for loans which we took, but not spending. Half of this year, we have spent about Ksh680 million. It does not make sense to take loans and not use them. It is good to negotiate for these loans when we are ready to use them. As I conclude, we are expected to pay the sinking fund. It is important that we establish a sinking fund so that when the time for repayment comes, we are ready to repay without having to strain the Consolidated Fund. This will be proper management of our public debt. The last one is on the issue of total debt stock. We have reported a total of Ksh9.15 trillion."
}