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{
    "id": 1524966,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1524966/?format=api",
    "text_counter": 903,
    "type": "speech",
    "speaker_name": "Tigania West, UDA",
    "speaker_title": "Hon. (Dr) John Mutunga Kanyuithia",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker, for the opportunity to add my voice to this very important debate in support of the adoption of the Liaison Committee Report on the Medium-Term Debt Management Strategy for 2025/2026. Borrowing is a necessity; it is not a bad idea. As many have spoken to it, rarely will you find countries that do not borrow. Individuals who do not borrow, do not grow fast. So, borrowing is not really a bad thing. The borrowing strategy is anchored on macroeconomic indicators outlined in the 2025 Medium-Term Debt Management Strategy. The strategy is backed by stable inflation rates. Kenya is experiencing some of the lowest inflation rates in over 10 years. On the other hand, it is also anchored on robust economic growth, which is abridged at around 5 per cent. It is also anchored on stable exchange rates and we can clearly attest to the fact that our exchange rates are not bad. The shilling has strengthened to between Ksh128 and Ksh130, depending on where you seek for exchange. Additionally, it is anchored on favourable global economic conditions, which we may not have full control of, and also strong revenue collection. This country has been doing very well in terms of revenue collection, and even if we sometimes miss the point, it is not by a great percentage. The Medium-Term Debt Management Strategy is also strongly based on the planned reduction of the fiscal deficit, being the difference between what the country can support and what needs to be sourced outside. This reduction basically harnesses revenue collection, which has been taken care of while limiting unproductive expenditure growth. Let me very briefly talk to the fact that the 2025-2026 Medium-Term Debt Management Strategy proposes that Kenya will borrow Ksh831 billion, which represents the deficit between the total revenue collected and the budgeted amount. The total projected domestic borrowing is projected to be 65 per cent. Many of us have spoken to that fact. It is expensive to borrow locally. However, the medium-term proposals or projections indicate that Kenya will be borrowing externally at a rate of about 45 per cent, which will bring down our borrowing to 55 per cent. That is within the acceptable limits. That reduction is key because it will also come with a lot of cost reduction. We will be borrowing from outside through concessional borrowing at a rate of 14 per cent, semi-concessional borrowing at around 3 per cent, and commercial borrowing at 8 per cent. For that to happen, certain factors must be put in place. That is why we cannot borrow a lot externally. As I mentioned, we need stable exchange rates. Macro-fiscal variables that 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."
}