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{
    "id": 1222180,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1222180/?format=api",
    "text_counter": 248,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": "It is not just about the fees and insurance that some of these loans come with. It is also the debt burden and refinancing costs of some of these loans. Once in a while you may need to pay further commitment and insurance fees over loans that are yet to be disbursed. Therefore, we are not enjoying the value of those loans. More importantly is that almost Ksh.1.2 trillion lies in our books but it is money that we cannot consume. What that means is that we are reporting a debt ceiling of Ksh10 trillion, which we are almost bursting. Then, out of the Ksh9.15 trillion we had borrowed as at December, Ksh1.2 trillion lies in our books over loans that are yet to be disbursed. It is only fair that the National Treasury embarks on a process to ensure they clean our books immediately after the passage of this Report. If a loan is not disbursable, the best thing is to do away with that loan and allow provision for us to borrow and do the things to which we can disburse money. Then we will be able to absorb the loans into our economy and grow it. You are aware that many contractors who are doing roads and other projects in all our constituencies have downed their tools because of non-payment. Maybe it would be better if we had the opportunity to get or borrow the Ksh1.2 trillion to go into productive work of ensuring all commissioned and contracted roads get back to work. The multiplier effect of that Ksh1.2 trillion will be huge on the economy. Just by having those debts in our books, we are not helping revenue generation and the country. The second element I want to support in this Report is the single Treasury account. It is sad we have not implemented it over the years and at least the last six years when I was the Chairperson of the Budget and Appropriations Committee in 2018. We had this recommendation in our Report—that the National Treasury ensures there is a single Treasury account, because that is the only way we can optimise on our cash flows. Even in your small households, we are only able to know and account for how much liquid cash we have if we put our money together. Then you prioritise as you budget where to apply the resources. Let us also not lie to each other. The truth is that as much as we insist on Government having a single Treasury account, the biggest impediment to a single Treasury account is our State corporations and Semi-Autonomous Government Agencies (SAGAs). Many of these SAGAs are using huge resources. They have to negotiate with private commercial banks for kickbacks over Government deposits and the Government goes back to the same banks to borrow. I have no fear mentioning some of these SAGAs. If you look at the Kenya Roads Board (KRB), for instance, you find that they have close to Ksh15 billion or Ksh20 billion in private commercial banks every single month, yet the same Government that has disbursed this money to them through fuel levy goes back to the same commercial banks to borrow. If you want to know the genesis of corruption in State corporations, it is in the mobilisation of deposits and where they deposit. It is no wonder resistance was so huge during the 12th Parliament when I came up with a Bill to try to limit where Government banks. The Bill could never see the light of the day but we cannot give up. We cannot afford to give up. We must pursue. We either have a single Treasury account or limit where Government banks. Government ministries, departments and agencies should bank with Government-owned banks so that Government does not need to go back to private commercial banks to borrow. All these things sounded like songs due to the state capture that existed before. Indeed, even as we pontificate about borrowing today, I heard the Deputy Leader of the Minority Party ask whether we are borrowing. Yes, we are borrowing. I support borrowing at 50:50 as the Committee proposes. The Hon. Deputy Leader of the Minority Party, my brother Robert, was asking why every other leader committed during the campaign that we shall not borrow. I correct you. Robert, when I listened, the Kenya Kwanza leader—the current President who is the legitimately elected President, President William Ruto—never said he shall not borrow. He said we would do so in a responsible manner, not borrowing in an irresponsible manner as the previous regime was doing. Indeed, when being sworn in, the President asserted The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}