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{
    "id": 1524923,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1524923/?format=api",
    "text_counter": 860,
    "type": "speech",
    "speaker_name": "Uasin Gishu County, UDA",
    "speaker_title": "Hon. Gladys Boss",
    "speaker": null,
    "content": " Thank you, Hon. Speaker. The 2025 MTDS aims to optimise access to external concessional borrowing and undertake liability management to minimise the costs and risks in Kenya's debt portfolio. External borrowing is relatively cheaper than domestic debt due to the large share of concessional loans from multilateral lenders such as the World Bank and our development partners. Indeed, 54 per cent of the total external debt portfolio is concessional. This significantly contributes to the sustainability of Kenya's debt. During our review and as previously mentioned, we noted that external commercial borrowing is relatively expensive compared to concessional loans. To address this issue, the 2025 MTDS proposes to reduce the share of commercial loans by taking various measures, including paying off some of the most expensive loans and exploring cheaper debt instruments such as our green bonds. Following the review of the 2025 MTDS, the Committee observed that the Government will borrow Ksh831.1 billion. That is equivalent to the fiscal deficit in the 2025 Budget Policy Statement (BPS). The amount to be borrowed will be sourced from domestic and external sources at a ratio of 65 per cent and 35 per cent, respectively. We were informed by the National Treasury and Economic Planning that it is important to have a mix of different types of debt so that we spread our risks from financial shocks."
}