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{
    "id": 1352629,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1352629/?format=api",
    "text_counter": 2389,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "The Report brings out very important issues, which we need to agree on as a House and support this important Committee to get value for those loans. In conclusion, the Government is reverting to domestic borrowing, which is good and easier to accomplish. However, the challenge with domestic borrowing is the interest rates, which are currently above 15 per cent, while we could get concessional loans at 2.5 or 3 per cent interest rates. We should delicately balance our borrowing ratio so as not to over-burden Kenyans. Borrowing domestically crowds out the market sector because the Government starts competing with small-scale industries and individuals in the private sector. The Government will always get first priority in terms of borrowing. We should get that ratio right to allow small-scale industries, factories, and individuals to borrow from our local banks. The Government can borrow externally from other countries. We will be helping this country. Public debt is contagious and critical to this country. As a House, anything that will help us to push this agenda forward and, more so, in reducing the public debt, will be very important. We all observed that we moved the budget deficit from 4.4 per cent to 5.3 per cent in the Supplementary Budget that we passed. As long as we are increasing our budget deficit, we will have no choice but to continue borrowing. It is time that we went for fiscal consolidation and, more so, reducing the budget deficit to the expected rates, which are normally around 3 per cent. With those many remarks, I second. Thank you."
}