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{
"id": 1545163,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1545163/?format=api",
"text_counter": 213,
"type": "speech",
"speaker_name": "Sen. Okiya Omtatah",
"speaker_title": "",
"speaker": null,
"content": "defaults that they used to have where Congress approved every debt. Now, we are trying to peg our debt on GDP. First of all, it does not make common sense to peg our debt on GDP. We know that GDP is the totality of a state's productivity as estimated per year. Yet you repay debt; not from your percentage of GDP, but from your taxes. Debt must be tied to the capacity to raise taxes to pay it. This is why in Article 220 of the Constitution, there is a requirement - Article 220(1)(c) states that- “Budgets of the national and county governments shall contain- (b) Proposals for financing any anticipated deficit for the period to which they apply, and (c) Proposals regarding borrowing and other forms of public liability that will increase public debt during the following year.” When you look at our budget, Parliament always passes a balanced budget that conforms to those two provisions. That budget is contained in the Appropriation Bill. Each Appropriation Bill gives us the legitimate debt within the Republic of Kenya. I have examined our Appropriation Bills from 2017 to 2025 and established that Parliament only approved Kshs2,791,543,336,707. When you examine the debt register published by the National Treasury, you find that we have borrowed Kshs8,918,021,659,782. This means we have borrowed Kshs6,950,163,132,328 outside the law. We have also seen the other activity that happened. The other day we were told that the Eurobond had matured. The Government was required to borrow extra money from the Eurobond market to offset what had become due. They borrowed a lot of money yet the Constitution, in Article 214, categorically states that the public debt is a direct charge on the consolidated fund. The Public Finance Management Act II and the regulations forbid borrowing money to pay a debt. So, where does the Government get the power to do these kinds of things? I am referring to Sections 15(2)(c) and 50(3) of the Public Finance Management Act. When we borrow money against the law, what are we trying to achieve? What evidence is there that the public debt for the Eurobond had not been paid off automatically as required by law as a direct charge to the consolidated fund, for which we would borrow further money? Madam Temporary Speaker, as I proceed to submit, I also want to observe that of the odious debts that I have referred to, Kshs4,605,840,287,992 were incurred from 2014 to 2022 when President Uhuru Kenyatta was in charge. Under President Ruto, that is from 2022, when he took over, Kshs2,250,325,905,200 had already been taken outside the law. We have a programme-based budgeting process whereby when money is borrowed, it is tied to a project. These trillions of shillings, more than six trillion, cannot be traced in Government documents. I have taken my time from October last year perusing thousands of documents that I got from the National Treasury, Central Bank, Control of Budget and all these people's websites, but I cannot trace where this money went. I can see why the Kshs2 trillion that the Parliament approved is clearly seen where it went. However, this money cannot be traced to the economy. To make matters The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard and AudioServices, Senate."
}