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{
    "id": 1216059,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1216059/?format=api",
    "text_counter": 216,
    "type": "speech",
    "speaker_name": "Sen. Cherarkey",
    "speaker_title": "",
    "speaker": {
        "id": 13217,
        "legal_name": "Cherarkey K Samson",
        "slug": "cherarkey-k-samson"
    },
    "content": "The issue of public debt is well captured in Article 214 of our Constitution. As a country, we must agree that we must have a sustainable debt. It is very unfortunate as a country that for the last so many years, we have had insatiable appetite toward borrowing. The worst part is that we are borrowing to finance the recurrent expenditure. If we were borrowing to finance development, it will be easy to see value. You can see, for example, in the year 2011, when the Late President Mwai Kibaki left office, the public debt that was standing was Kshs5.0 trillion and in the year 2021 when President Uhuru Kenyatta left, he left a debt of Kshs13.91trillion. I am happy to note that upon the communication of the President and his Cabinet yesterday capped at 55 per cent of Gross Domestic Product (GDP). However, as much we are talking about the outstanding debt, it is 67 per cent of the GDP. The Cabinet made a resolution and I do not know whether the Chairpersons of Committees were aware of that resolution was that it is now being paid at 55 per cent of the GDP. Therefore, there is still a lot to be done; we cannot borrow. We have had even the projections of the Financial Year 2023/2024. We have a National Budget of Kshs3.3 trillion. Out of the Kshs3.3 trillion, we will need to borrow Kshs860 billion. Currently, we have a deficit budget. What does that mean? We will continue borrowing, but we must ensure borrowing is sustainable. The measures that the President and the Government have taken are well lauded, but I appeal to the President and his Cabinet to walk together hand in hand with the Parliament of Kenya; both the National and the Senate because we represent counties. Article 96 of the Constitution is clear on our role of protecting of counties. You cannot tell me today that counties cannot be part of borrowing yet the people who pay taxes live in those counties. Therefore, we look forward to ensuring that. Thirdly, I know that this is a very interesting topic on the Kenya Revenue Authority (KRA). I commend the Chairperson, the former Election Board Chairperson; Mr. Mwaura is doing a good job by removing exemptions and reliefs. I have seen the Law Society of Kenya (LSK) is threatening to go to court. Why would LSK do so? I am a member of LSK, they have never asked me that they want to go court to block people from paying taxes. The removal of tax reliefs and exemptions is welcome. I can give you a simple illustration before I conclude. You heard that our brothers who left Government the other day, including the ‘Handshake brothers’ from the Minority side--- One litre of spirit, the alcohol is paid Kshs356 per stamp of exercise duty, but 7.5 billion stamps cannot be accounted. That translates to around Kshs500 billion that KRA did not collect yet we are only looking for Kshs860 billion. Last financial year, an exemption of Kshs370 billion was exempted. I know of a former Principal Secretary (PS), who was in charge of interior, has an outstanding waiver of Kshs4 billion that was not paid."
}