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{
    "id": 1545656,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1545656/?format=api",
    "text_counter": 211,
    "type": "speech",
    "speaker_name": "Sen. (Dr.) Khalwale",
    "speaker_title": "",
    "speaker": {
        "id": 170,
        "legal_name": "Bonny Khalwale",
        "slug": "bonny-khalwale"
    },
    "content": "total stock of public and publicly-granted debt stood at Kshs11.02 trillion, equivalent to 65.7 per cent of the Gross Domestic Product (GDP), up from Kshs10.58 trillion, which was equivalent to 65.7 per cent of the GDP in June, 2024. This figure is projected to rise further to Kshs13 trillion by June, 2027. Consequently, debt servicing costs are expected to increase to Kshs1.97 trillion by June, 2025 and further to Kshs2.4 trillion by June, 2027. Additionally, debt service payments, including interest and redemption payments, are projected to remain elevated averaging 60 per cent of the total income. This underscores the tightening fiscal space and highlights the urgent need for a robust debt management strategy aimed at minimizing costs and mitigating the risk associated with high debt distress levels. In reviewing the 2025 Medium-Term Debt Management Strategy, my Committee engaged with the key stakeholders, including the Commission on Revenue Allocation (CRA), the Institute of Certified Public Accountants of Kenya (ICPAK), the Council of Governors (CoG), the County Assemblies Forum (CAF), Budget Hub, the Institute of Public Finance (IPF), the Institute of Social Accountability (ISA), Office of the Auditor General, Okoa Uchumi, Mr. Kelvin Ronyo and the Institute of Economic Affairs (IEA). The Committee held a total of 10 sittings while processing this Medium-Term Debt Management Strategy. Additionally, in adherence to Article 201 (a) of the Constitution, the Senate conducted public participation on the 2025 Medium-Term Debt Management Strategy through a call for submission of memoranda. Arising from these consultative engagements, the Committee made several recommendations, which included the following- (a) Noting that as of June, 2024, Kenya's public debt stood at Kshs10.58 trillion, equivalent to 63 per cent in present value terms exceeding Public Finance Management Act frameworks of PV to GDP ratio of 55 per cent by 8 per cent points, the National Treasury should submit quarterly reports to Parliament detailing the progress made towards compliance with the set threshold as contained in the Public Finance Management Act."
}