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{
    "id": 1354268,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1354268/?format=api",
    "text_counter": 94,
    "type": "speech",
    "speaker_name": "Kiharu, UDA",
    "speaker_title": "Hon. Ndindi Nyoro",
    "speaker": null,
    "content": " Hon. Speaker, I beg to move that the Supplementary Appropriation (No.3) Bill (National Assembly Bill No.71 of 2023) be now read a Second Time. Hon. Speaker, as Members are aware, last week we robustly debated the Report of the Budget and Appropriations Committee with regard to the Supplementary Estimates. Therefore, I will just highlight a few issues which appear in the Supplementary Appropriation Bill, that is Supplementary 1 of 2023. Hon. Speaker, I was able to apprise Members of the fact that the essence of this Supplementary Budget that we are currently debating today and hopefully conclude by the end of this sitting is primarily edged on only three things. One of the critical things that we are doing in rearranging Government financials in these Supplementary Estimates 1 is the repayment of interest rates of the obligations that we owe both domestically and externally. As Members are aware, we passed the main Budget in June but from June to date, there have been dynamics across the money markets which affect the cost of money. We have seen an increase in interest rates both locally and globally. Most of our foreign debt is dollar denominated. On the global figure of our debt, Kenya will take us about Ksh10 trillion in debt, and 50 per cent of that debt is foreign. Most of the foreign debt is dollar denominated. From January to date, our local currency has lost over 21 per cent. Consequently, it means that about Ksh4.3 trillion that we owed at the beginning of this year has escalated to around Ksh5.3 trillion. The majority of this money is not borrowed but it is just the variations in our local currency with regard to the dollar, which is a denomination that is used in most of our borrowing. The essence of the monies that we are enhancing is basically to provide for that: Ksh145 billion in this Supplementary Budget is going to enhance the payment of our interest rates for both domestic and foreign debt. It is important that I clarify why we, as a country, have to keep on raising our interest rates. Why do Treasury Bills have much more yield than they had in June? When we are looking at the economy and the balance of payment, it has two components. One is in the current account that records the net imports (X-M) and then there is another one that records capital inflows minus the capital outflows. When the other global interest rates are rising, if the current or domestic interest rates do not go in tandem, we make other economies more attractive for investment. That is why Kenya cannot be isolated. When the global interest rates are rising, Kenya also raises, so that we can attract capital inflows within the country. That is one of the reasons we had to increase our budget in this Supplementary Budget."
}