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{
"id": 1545681,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1545681/?format=api",
"text_counter": 236,
"type": "speech",
"speaker_name": "Sen. Cheruiyot",
"speaker_title": "The Senate Majority Leader",
"speaker": {
"id": 13165,
"legal_name": "Aaron Kipkirui Cheruiyot",
"slug": "aaron-cheruiyot"
},
"content": "Personally, I have been very consistent on my call for a better management of our debt situation as a country. From the days last Parliament, when we raised first, the nominal figure, I think from six to 10 per cent, I opposed that move, for reasons that I will speak in to, and why I feel the Finance and Budget Committee, though they have done good work, can do better on this particular issue. It is not just a ticking of the box when the National Treasury lays before the House the debt management strategy that they want to bring before Parliament. We are placed with serious responsibility as a legislature, and the institution of accountability, where we can call on the National Treasury and ask them, to perhaps do better on many areas. This issue of debt is not a simple issue. It is a serious issue, which, if not properly managed, can lead the country into economic collapse. This is a threat that we have lived with for a while. Madam Temporary Speaker, if you take time to read the Kenya Kwanza Manifesto, you will see that the issue of debt featured quite prominently, and it is described there as a perfect economic storm, what Kenya finds itself in. That, we still are tinkering on or about 70 percent. From the figure that they have given to be specific here, is that we are currently at 65.7 percent of the GDP, which is not an interesting figure. Remember, when we passed the amendment that I supported to a percentage and we explained the justification there in 2023, if I am not wrong, the argument was that that is more scientific and accurate than having it in a nominal figure, such that, as the economy continues to grow, you keep your debt at a sustainable level. Due to the situation that we are in, the fiscal space that we find ourselves in, it is not possible not to borrow, yet you must still also do so responsibly. If today we were to say that we are not borrowing any shilling, as I have seen people ignorantly argue so many times in public spaces, perhaps then debt repayment might be the only thing that we will be able to do, because unfortunately, it is a first charge on our Consolidated Fund. With a debt repayment of close to Kshs1.6 trillion, then you will be left with less than Kshs600 trillion to fund counties, yet you have not paid salaries. Therefore, let us not even have that conversation, because it is totally impossible today, in this economy, not to borrow and fail to default, because you will have to choose one thing. Madam Temporary Speaker, if you do not borrow, then one of the two most important charges - debt repayment and payment of salaries on our consolidated account will have to give way. Either we will have to default on debt repayment or on salaries to all the people that earn from the Kenyan taxpayer, which includes doctors, teachers, police officers and civil servants. It is not an very interesting situation and, therefore, we have always requested that this debt management strategy be anchored on our fiscal deficit as a good measure of whether what we are doing is right or wrong. There must be a clear demonstration that there is an effort to consolidate fiscally so that we continue to reduce our deficit year-on- year, once we do our budget to a point where we are not borrowing more than the previous year; but we are borrowing barely enough to meet what is most critical and to also seek ways through which we can grow our own economy and pay up on our major debts. 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."
}