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{
    "id": 1216034,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1216034/?format=api",
    "text_counter": 191,
    "type": "other",
    "speaker_name": "",
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    "speaker": null,
    "content": "prudent fiscal and debt management requires that a balance needs to be maintained between how much to borrow versus where to borrow externally or domestically within the country. Mr. Speaker, Sir, the total stock of public and publicly guaranteed debt stands at Kshs9.15 trillion as at December, 2022 which is equivalent to 67 per cent of Gross Domestic Product (GDP). This debt comprises external debt amounting to Kshs4.673 trillion and domestic debt amounting to Kshs4.472 trillion. The publicly guaranteed debt amounts to Kshs151.075 billion. These debts are owed by- (a) KenGen - which owes Kshs36.568 billion (b) Kenya Ports Authority - which owes Kshs35.850 billion (c) Kenya Airways - which owes Kshs78.675 billion According to the Debt Sustainability Analysis (DSA), the Present Value (PV) of debt- to-GDP ratio was estimated at 60 per cent way above the recommended 55 per cent. The MTDMS proposes a debt ratio of 1:1 from external and domestic sources respectively. In terms of the fiscal framework, the National Treasury projects ordinary revenue to be collected in the Financial Year 2023/2024 to stand at Kshs2.571 trillion. The projected fiscal deficit of Kshs720.1 billion in Financial Year 2023/2024 at 4.4 Per cent of GDP. Mr. Speaker, Sir, having processed this document of the MTDMS, the Committee made a few observations which are: (a) The projected deficit to be financed in the Financial Year 2023/2024 of Kshs720.1 billion would breach the existing debt limit given that the available headroom fiscal space under the Kshs10 trillion debt ceiling is estimated at less than Ksh600 billion. (b) The current debt ceiling is not based on any principle whereas such a limit should be based on the debt-carrying capacity of a country. (c) There is a breach of three out of seven debt sustainability indicators. These are the present value of debt to the GDP ratio, the present value of the public and publicly guaranteed external debt to the GDP ratio, and public and publicly guaranteed debt service to exports ratio. This is a sign that if caution is not taken, there is a risk of debt distress. Mr. Speaker Sir, having made those observations, the Committee made the following recommendations---"
}