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"id": 1393831,
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"speaker_name": "Sen. Olekina",
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"id": 407,
"legal_name": "Ledama Olekina",
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"content": "deficit, some local financial institutions hike their interest rates. Currently, local farmers and businessmen are borrowing money at rates of about 20 per cent and above. We, therefore, need to be very clear on how to better manage our finances as a country. The first thing that we need to ask is what the deficit is. I see that the Committee on Finance and Budget has indicated the deficit to be about Kshs739 billion. They have said that the Government will borrow 55 per cent of this internationally and 45 per cent of this locally. Mr. Temporary Speaker, Sir, we have this deficit, and we have to be prudent in terms of our management of the country’s debt because if you set up, we change. I remember in the last Parliament, we were here with some Members who are current Cabinet Secretaries like my friend, Hon. Murkomen. He was completely against the increase of the debt ceiling. However, now it has cleverly been changed from a particular figure to a percentage of the GDP. Let us be very sober in our discussions. Is the GDP set or is it a moving target? I have looked at this report and it says that by June 2023, it was about 70.8 per cent of the GDP and the nominal amount was Kshs10.278 trillion. On this, Kshs5.4 trillion was external debt and Kshs4.832 trillion was domestic debt. They then move quickly and clap for themselves saying that in February 2024, it was at 67.2 per cent, arguing that we have reduced from 70 per cent to 67 per cent and that the nominal amount has gone up to 11.2 per cent. However, what they forgot to say here is that the GDP is a moving target, and it is difficult. You cannot come in and tell us we have it as a figure. Mr. Temporary Speaker, Sir, that is why I am completely against the changing of the debt from a figure to a percentage of the GDP. Understanding finance is the beginning of building a nation. However, I tend to believe that sometimes, we speak from both sides of our mouths - You say that you want to help yet at the same time, you are increasing expenditure. Today, if you ask me what the budget of the State House is, I dare say that it is 50 per cent of our budget deficit. It is about Kshs364 billion. If we care about this country and want to move it far, we should come up with a proper medium-term management debt strategy that allows us to monitor our credit rating worldwide, so that it is not affected. That should be the first thing. First, to monitor our credit rating worldwide so that it is not affected. Second, so that we can lower down the interest rate. Third, so that we can make it affordable for credit, domestically. What is the first thing we need to do? We need to completely lower the cost of our day-to-day running of the House on the Hill. I would be happy if the President said that today, we are reducing this budget. I heard him in Narok saying that he was going to cut on those spending in parastatals. It is good. Let us do away with those that are obsolete. Let us not fund them. However, when you live in a glass house; you have to be careful. The budget of Statehouse is unbearable; we are not able to manage it. That is issue number one. I am happy that my good friend the Senate Majority Leader has just walked in. Two, we need to be creative. I heard the Cabinet Secretary for Treasury and Planning and my good friend, hon. Mudavadi talking about the new strategies that the Government is The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}