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{
    "id": 1562258,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1562258/?format=api",
    "text_counter": 434,
    "type": "speech",
    "speaker_name": "Mr. Davis Chirchir",
    "speaker_title": "The Cabinet Secretary for Roads and Transport",
    "speaker": null,
    "content": " Member for Igembe Central, Hon. Kiili. We do not wish to securitise part of the RMLF that is addressing from KERRA. We noted that and we would be coming to this House to seek necessary amendments to the statute that governs RMLF. We have the annuity fund and you know it has not taken off like previously because the risk placed on annuity, on the maintenance front, is so high. Most of the roads which were meant to be done on annuity have basically collapsed and we are sitting on three shillings under annuity. A few roads which were done in annuity can be managed within 50 per cent of the three shillings. Therefore, we can securitise Ksh1.50 and return that money to your various constituencies to address the road maintenance and development challenges that we are facing today. We also proposed to securitise part of the Cabinet Secretary allocation. As one Member said, for a long time, it has not been distributed equitably to all the constituencies. There are emergencies across the country and yet this equivalent of Ksh1.80 or Ksh1.50, which sits under the Cabinet Secretary allocation, could be securitised. When you get the discounted future value over 10 years, we can raise as much as Ksh120 billion today and come to this House to agree on how we can build our roads in Kenya. You know the challenges we have on the Low Volume Seal Roads (LVSRs) that need maintenance and that are orphaned because we do not have maintenance allocation for them. Securitisation does not seek to impact majorly on the Kenya Rural Roads Authority (KeRRA) mandate, because KeRRA has a very specific role. Therefore, when we talk about securitisation, we are looking at making the best use of some of the Road Maintenance Levy Fund (RMLF) money within the ambit of the Kenya National Highways Authority (KeNHA), where we can get a shilling from KeNHA and another from the Cabinet Secretary allocation, then Ksh1.50 from the Annuity Fund. This is the securitisation we are talking about that can raise Ksh120 billion and address the challenges. It includes what we have done on the securitisation that raises Ksh175 billion. The bridge facility of the Ksh175 billion has enabled all the contractors to go back to work. So, if there is any stalled road due to a pending bill in any part of the country today, I would like to take that up and ensure the contractor resumes work. We have paid them on account of securitisation for the pending bills and, therefore, we should get them to continue and complete some of those projects."
}