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{
    "id": 1524919,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1524919/?format=api",
    "text_counter": 856,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "THAT, the country’s borrowing strategy is approved at 35 percent for net external borrowing and 65 percent for net domestic borrowing as contained in the 2025 Medium Term Debt Management Strategy. Let me begin by thanking Members of the Liaison Committee who processed this Medium-Term Debt Management Strategy. I applaud the membership because this was the first time they considered the Medium-Term Debt Management Strategy (MTDS). In fact, last night, the Liaison Committee along with the Cabinet Secretary for the National Treasury and Economic Planning, his Principal Secretary and their team, sat until midnight to complete work. We also appreciate them. The MTDS is a policy document that guides debt management for the next financial year. The MTDS Framework assesses the cost and risk elements in the existing portfolio and develops a strategy to minimise those costs and risks in line with set management objectives. The MTDS has been prepared at a time when the country's public debt reached Ksh11.2 trillion in January of 2025. That is equivalent to 65.7 per cent of Gross Domestic Product (GDP). This debt comprises Ksh5.93 trillion as domestic debt and Ksh5.09 trillion as external debt. Despite the high level of debt that stands at the present value of overall publicly guaranteed debt at 63.36 per cent of GDP, as for the latest debt sustainability analysis, this ratio is projected to decline to anchor the debt at 55 per cent of GDP present value terms by 2028. We got assurance from the Cabinet Secretary for the National Treasury that they will support and work hard to consolidate government's fiscal policies to ensure they achieve this target. The 2025 MTDS aims to optimise access to external concessional borrowing and to undertake liability management to minimise the costs and the risks of our debt portfolio."
}