Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1382283,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1382283/?format=api",
    "text_counter": 169,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "pressure and calls for proper implementation of liability and cash management to minimise the impact of implementing the budget. The Exchange Rate Risk refers to the vulnerability of the public debt portfolio to exchange rate volatility. A review of the valuation effect following the depreciation of the Kenya Shilling against the US Dollar and the Euro, which jointly account for 88 per cent of the denomination of the debt stock, resulted in an increase of the debt stock by over Ksh800 billion. Given these circumstances, conventional debt management policies may prove inadequate in addressing the challenges faced by the country. Such challenges include the accumulation of undisbursed loans that necessitate annual payment of commitment fees, possible inefficiency in utilising borrowed resources, and a growing level of contingent liabilities. Therefore, heightened vigilance in debt management and adherence to fiscal consolidation measures is imperative. After deliberation and consideration of contributions by various stakeholders, the Committee gave the following non-financial proposals: 1. That, in the next Medium Term Expenditure Framework cycle, the National Treasury ensures consistency between the Medium-Term Debt Management Strategy and the Budget Policy Statement regarding the optimal borrowing strategy and the fiscal consolidation path. 2. That, the National Treasury ensures that the fiscal deficit and subsequent public borrowing projections are realistic by incorporating forecasts on any potential end-year changes to interest rates, exchange rates, and contingency spending. 3. That, to address the emerging escalation of domestic interest rates alongside domestic interest payments, within 60 days of adopting the Report, the National Treasury submits a report to the National Assembly providing practical measures to reduce the domestic debt service burden to sustainable levels. 4. That, in line with the Resolution of the National Assembly on the 2023 Medium- Term Debt Management Strategy, the National Treasury publishes guidelines that will ensure that the Treasury Single Account is established and operationalised by 1st July 2024. 5. That, within 30 days of the adoption of the Report and subject to Section 50 of the Public Finance Management Act of 2012, as amended in 2023, the National Treasury submits to the National Assembly a comprehensive report on the breach of the debt anchor of 55 per cent plus 5 of GDP and the remedial measures undertaken to ensure adherence to the debt threshold. 6. That, to promote fiscal sustainability, reduce debt distress and slow debt accumulation, any deviation from the medium-term fiscal deficit path designed by both the Budget Policy Statement and the Medium-Term Debt Management Strategy and any resultant readjustment to loan financing should be pre- approved by the National Assembly. 7. That, the National Treasury ensures customisation of the Medium-Term Debt Management Strategy for the next Medium Term Expenditure Framework cycle to Kenya's specific debt challenges by providing specific measures to deal with undisbursed loans and related commitment fees, measures to resolve risks emanating from non-performing loans that are owed by state-owned enterprises and estimation of contingent liabilities. 8. That, in order to help enhance public participation in public debt matters, the National Treasury publishes simplified, citizen-friendly documents to accompany the technical reports on public debt that is submitted to the National Assembly; and, 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"
}