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{
    "id": 1478606,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1478606/?format=api",
    "text_counter": 256,
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    "content": "steps taken to stabilise the economy, restore investor confidence and improve the credit rating? I would state as follows: That the credit trading agencies downgraded our country during the peak of the demonstrations and stated that Kenya's fiscal strength is weakening with the loss of Finance Bill, 2024, given the country's high debts and interest payment burdens. They started large fiscal deficits and the inability to broaden the domestic revenue base which has thus weakened the fiscal strength over the past decade. We are therefore confident that with the prevailing peace in the country and the measures the government has taken to boost investor confidence, our ability to service our debt will not be impacted. The measures that have been taken to stabilise the economy and restore investor confidence include the following: 1. The Government has continued to invest in agricultural productivity to support economic growth which is projected at 5.2 percent in 2024 and 5.4 percent in 2025. The latest report was that we grew at only 4.6 percent but that was expected. In fact, we were expecting a slower growth but now with 4.6 percent we are sure that, if the peace prevails and all other fundamentals remain constant, we will achieve the target of 5.2 percent in 2024 and move even to 5.5 percent in 2025. 2. Ensuring macroeconomic stability with inflation remaining below 5 percent target for three consecutive months largely driven by easing food and fuel prices. Overall inflation remained stable at 4.4 percent and 4.3 percent, respectively in August and July, and in September it was 3.6 percent. 3. Ensuring stability of the exchange rate which has created confidence and triggered influence of foreign direct investment and attracted investors to the Nairobi Securities Exchange. I will add that our import cover is fairly healthy at about 4.6 percent monthly import cover. 4. Private investment will be supported by measures aimed at improving competitiveness, inclusivity, market efficiency, positive business sentiments, access to the international market and projected foreign direct investment inflows. Investment will also benefit from an increased focus on Public-Private Partnership (PPPs) following the new completion of the harmonisation of the public investment policy which will align PPP and public investment management frameworks. 5. The other one is on fiscal stabilisation. Fiscal consolidation will be supported by continued efforts to enhance domestic revenue mobilisation, prioritise and rationalise expenditure while safeguarding priority government programmes and social spending. Emphasis will be placed on enhanced revenue mobilisation through a combination of tax administrative and tax policy reforms that include implementation of national tax policy and the medium term revenue strategy that will further strengthen tax revenue mobilisation efforts to about 20 percent. Mr. Temporary Speaker, Sir, we are focusing on 22 per cent of the GDP over the medium term. It is not bullet. Currently, it is 14 per cent of the GDP, that is our tax revenue as a percentage of our GDP. We want it to move forward. As we speak, we are in the process of rolling out a system for KRA. We are also focusing on non-tax measures 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."
}