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{
    "id": 1382838,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1382838/?format=api",
    "text_counter": 92,
    "type": "speech",
    "speaker_name": "Sen. Oketch Gicheru",
    "speaker_title": "",
    "speaker": null,
    "content": "Another issue that I want to highlight is the recognition that in the last one year, the exchange rate in the country has led to a serious economic beating. During the time that we considered this report, we had a good bump with the response to the Eurobond that was floated in the last one month. We have been seeing a good number of appreciations of our currency going forward. If you look at how this BPS is structured, even when our Chairman of the Committee will be tabling the report on the Mid-term Debt Management Strategy, you will realize that there is excitement around the rebound of the Kenya shilling. As a House, we must interrogate whether this is a sustainable rebound of the Kenyan shilling or there are some cautionary elements we can put to ensure that, in the next three to five months, we do not face the next shocks after passing the BPS. In other words, we must interrogate what has led to the appreciation of the Kenyan shilling in the last one month. Going forward into the next six months, we should put any caution that can make sure that our projections are not based on a spike, but an absolute economic strategy that will ensure that we do not get into trouble with the BPS. Alongside that is the question of fiscal consolidation. This is an important area that we must focus on, as a House. Most of the propositions that are being done here, for instance, last year when we were amending the Public Finance Management Act, 2012, we gave the National Treasury a leeway to use the ratio formula in terms of managing our debt strategy. We are not using the numerical value, but instead looking at the debt to Gross Domestic Product (GDP) ratio. Mr. Speaker, Sir, there are different thoughts that we had in the committee and other economists will have in different avenues. However, the middle ground perhaps is not to look at whether it is right to use the numerical value in terms of our debt management strategy or the ratio formula. The quest I would put before the House is that we be keen on inviting the National Treasury led by our committee, to give us a serious quarterly updates on how they are progressing in the BPS that they have forwarded to this House. They should also attach to the Mid-Term Debt Management Strategy Lastly, I want to address the issue of Own Source Revenue (OSR). I know it was not spoken well. However, given that we want to fight so strongly, at least, the proposed figure by this particular committee stands. If it will be referred to a mediation Committee, we look at where we can come to with the National Assembly. A strong sense of focus on OSR by counties is something that we need to articulate better. I say this because I have realized that the issue of pending bills that has been put here is something that counties will struggle with. It is not coming out clearly as a first charge to them in the moneys that we give them in the equitable sharable revenue. More importantly, it will be better if that is integrated with the issue of the OSR. This is so that the massive pending bills that we are seeing here can be addressed, at least, at a current budget cycle formula. It becomes very difficult to pursue the idea that the National Treasury has projected some sectors that are going to activate and stimulate the economy when most of the pending bills in counties end up affecting the private sector. This is because they are the suppliers that are actively involved in the day-to-day running of these economies. The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Director, Hansard Services, Senate."
}