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{
    "id": 1524936,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1524936/?format=api",
    "text_counter": 873,
    "type": "speech",
    "speaker_name": "Gilgil, UDA",
    "speaker_title": "Hon. Martha Wangari",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker. There is a lot of excitement. I think it is because of the previous Motion that has passed on the Floor of the House. On some of the issues that we have raised, we took time to meet with different stakeholders. We met with the Controller of Budget, the office of the Auditor-General and Ministry of National Treasury and Economic Planning until late last night. We also met and received memoranda from other stakeholders, including a civil society that wrote to us. We also got a written memorandum from the Central Bank of Kenya (CBK). Our debt has been a matter of discussion for obvious reasons. It puts a strain in the management of our revenue versus expenditure. The reason it is heavy in our budget is because it has also risen over the years. Right now, we are speaking of 67.5 per cent of the GDP, against a recommendation and something that is put in law under the PFM Act of 55 per cent (plus 5 per cent) by 2028. One of the issues that we raised with the National Treasury was their timeline, in terms of ensuring that our debt is manageable and has come down to the recommended percentage. The Cabinet Secretary for the National Treasury was very clear that it has been declining. We are now at 65.7 per cent but very soon, he said by 2028, we will not have 55 per cent, but 53 per cent. Fiscal deficit is the difference between government revenue and spending in any fiscal year. It is at 4.3 per cent of GDP this year, it is estimated to be at 3.5 per cent of GDP in the Financial Year 2026/2027. It will eventually be at 3.2 per cent in the Financial Year 2027/2028. The issue of balance of these debts in terms of internal and external borrowing was another matter that was very critical. It has been proven that we are relying more on domestic borrowing than external borrowing. I know the internal borrowing is termed higher and more expensive. That is why you see the rates are different. During our review, we realised that the average interest charged on domestic debt is 13.2 per cent, relative to the interest rate on external debt which is 3.7 per cent, thus becoming substantially more expensive. The reason external borrowing is relatively cheaper than domestic borrowing is 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 which significantly contributes to the sustainability of Kenya's debt. The other issue that Members raised is right application of debt. What does that mean? There is no single country I have heard in the world that does not have debt. However, where it goes is what Kenyans and many of our voters are keen on. If you are borrowing to build 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."
}