Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 1524963,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1524963/?format=api",
    "text_counter": 900,
    "type": "speech",
    "speaker_name": "Kitui Central, WDM",
    "speaker_title": "Hon. (Dr) Makali Mulu",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker. From the outset, I thank the Liaison Committee for a job well done. It is not always easy to go through the Medium-Term Debt Management Strategy and come up with recommendations. I have looked at the report and it really brings out very important issues regarding managing our public debt. I want to focus on three issues which have been captured in the report. First is the issue of the ratio being above 55 per cent, as approved by this House. The intention was that by 2028, the Government, through fiscal consolidation, will be able to bring this ratio back to either 55 per cent or below 55 per cent. However, with the way things are, I can say without any fear of contradiction that if we do not change our attitude towards how we spend our money as a country, we will never be below 55 per cent. As recommended by this report, this is a matter that the National Treasury should take seriously. We need to work towards bringing this figure to below 55 per cent. Second is the ratio of domestic debt to external debt. The current proposed ratio is 35 per cent for external debt and 65 per cent for domestic debt. If you look at the statistics of our debt repayment, particularly interest repayment, you will realise that even though domestic debt is about 51 per cent and external debt is about 49 per cent, 70 per cent of the total annual interest paid goes to domestic debt, while 30 per cent goes to external debt. In simple terms, we are saying that domestic debt is very expensive. The way forward to help this country is to go slow on domestic debt and increase external debt. We know the challenges the country is facing in accessing external debt, but I believe it is the responsibility of the Kenya Kwanza Government, through the National Treasury, to ensure that they do what it takes to reduce domestic borrowing and increase external borrowing. In that case, we would be helping the country. 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."
}