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{
    "id": 1439429,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1439429/?format=api",
    "text_counter": 739,
    "type": "speech",
    "speaker_name": "Kitui Central, WDM",
    "speaker_title": "Hon. (Dr) Makali Mulu",
    "speaker": null,
    "content": " Thank you very much, Hon. Temporary Speaker, for giving me an opportunity to second this Motion. I want to appreciate our Committee Members for the good work they are doing of ensuring we oversight the CFS expenditures. The report moved by my Chairperson captures both Supplementary Estimates II for the Financial Year 2023/2024 and Financial Year 2024/2025. I want to spend more time on the CFS expenditures for the Supplementary Estimates II for the Financial Year 2024/2025. To put things in perspective, from what the Chairperson has said, this country is projected to spend Ksh1.83 trillion for purposes of servicing our debt. Out of that figure, we will spend Ksh1.01 trillion to pay interest and the rest will redeem the loans taken. To appreciate the magnitude of this problem, I want to provide these details. If you look at the projected revenue for the coming financial year, we project to collect about Ksh2.9 trillion from ordinary revenue. Since we must finance the debt deficit, looking at the total amount which will be used to pay our debts against the total projected revenue collection, which is Ksh2.9 trillion, we are saying 62 per cent of our ordinary revenue will go to debt repayment. To make it easier, in the next financial year for every Ksh100 collected, Ksh62 will be used to pay debts. We will remain with Ksh38 to take care of all the other Government expenditures. We all know debt repayment is a first charge to the CFS. This means we pay before we think about anything else. We are paying Ksh1.01 trillion in form of interest. This amounts to 55 per cent of the total projected revenue. It means for every Ksh100 collected, Ksh55 will pay for interest, not the loan. If you look at this scenario, you will realise that the CFS expenditures have become too huge to a level it has become a matter of concern to this country. The amounts being used to pay for debts are making our fiscal space very inflexible such that the Government does not have space to factor other expenditure items. Hon. Temporary Speaker, that is why the Committee wants this House to take matters of public debt very seriously. I agree with the Chairperson when he said that despite the fact that these expenditures are not appropriated by this House, it does not mean we should not offer oversight. I urge this House to support the recommendations made by this Committee. We need a very clearly detailed legal framework on how to oversee public debt or the CFS expenditures so that we can properly oversee the issue of public debt repayments. On the overdraft facility available at the Central Bank of Kenya, the Chairperson noted that from our analysis, the Committee is getting worried because of how it is being used. In the proposed budget, we factored in Ksh200 million for this so, it is important that we oversee this overdraft facility. I can see I am really short of time. Regarding the issue of Kenya Airways (KQ), the national Government has taken over the guaranteed debt repayment. As a Committee, we are worried because it is not clear how KQ will compensate taxpayers who will pay this loan. How this has been done is not very clear. The Committee will get all the details to help the House appreciate how these agreements are signed. 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."
}