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{
    "id": 1352620,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1352620/?format=api",
    "text_counter": 2380,
    "type": "speech",
    "speaker_name": "Balambala, JP",
    "speaker_title": "Hon. Abdi Shurie",
    "speaker": {
        "id": 13294,
        "legal_name": "Abdi Omar Shurie",
        "slug": "abdi-omar-shurie-2"
    },
    "content": " Hon. Temporary Speaker, I beg to move the following Motion: THAT, this House adopts the Report of the Public Debt and Privatisation Committee on its consideration of the loans contracted by the national Government between May 2022 and April 2023, laid on the Table of the House on Thursday, 28th September 2023. Hon. Temporary Speaker, I would like to thank the Members of the Public Debt and Privatisation Committee for their steadfast resolve to consider the Loans Report that was submitted to Parliament and table this comprehensive Report for consideration by the House. Pursuant to Section 31 (1) of the Public Finance Management (PFM) Act, 2012, the Ministry of National Treasury and Economic Planning submitted to the National Assembly three Reports on new loans contracted by the national Government for the following periods: 1. 1st May 2022 to 31st August 2022. 2. 1st September to 31st December 2022. 3. 1st January 2023 to 30th April 2023. As per the reports, a total of 19 externally financed loans totalling Ksh213 billion were signed between the national Government and international creditors in various currencies between May 2022 and April 2023. By the time these reports were tabled before the National Assembly, only three of the 19 loans were partially disbursed, thus indicating an estimated disbursement rate of only 11 per cent. The partially disbursed loans were primarily commercial, totalling Ksh24.2 billion. Due to the low disbursement rate, 89 per cent of the loan resources remained under the accounts of the creditors, despite being signed for. It is, therefore, noted that there is a need to increase the rate of disbursement of the loans acquired if the budgeted expenditures are to be financed in full and projects are to be completed on time. This will also be beneficial in addressing the ongoing liquidity and foreign exchange imbalances arising from high debt servicing expenditure, stimulate the economy, the economic development, and eventually promote public debt sustainability. An intention policy initiative should target increasing the disbursement rate of concessional loans from bilateral and multilateral lenders due to the low cost and grace period. They have lower repayment pressures. Thus, they allow borrowing to be undertaken with a reasonable impact on debt sustainability indicators. Additionally, their disbursement is critical for projects with low repaying capacity, like social and climate change projects. They contribute to economic development. While the submission of the loan report to Parliament is a good step, there is a need to enhance transparency and accountability on loans acquired by the national Government. As such, the submission of full and complete information is critical in ensuring full oversight of 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."
}