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{
    "id": 1575972,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1575972/?format=api",
    "text_counter": 3908,
    "type": "speech",
    "speaker_name": "Ijara, NAP-K",
    "speaker_title": "Hon. Abdi Ali Abdi",
    "speaker": null,
    "content": "The Public Debt Service continues to dominate the Consolidated Fund Services (CFS) allocations, accounting for 88 per cent of total expenditures. While this underscores the weight of debt-related obligations on the national Budget, it also highlights a significant opportunity: the need to institutionalise structured and predictable liability management. The Government can then unlock more sustainable fiscal space over the medium term, support development priorities, and protect essential public services. Major changes under the CFS include a reduction of Ksh106.5 billion, from Ksh569.9 billion to Ksh385.4 billion, in domestic debt redemption payments primarily due to a decrease of Ksh184.2 billion in the provision meant to cover any shortfall in the redemption of Treasury Bills, from Ksh200 billion to Ksh15.89 billion. The external debt service is projected to decline by Ksh110 billion from Ksh704.9 billion to Ksh594.9 billion. The changes are a result of a reduction of Ksh114.87 billion, or 24 per cent, to Ksh361.5 billion from Ksh474.4 billion under external debt redemption payments, attributed to liability management targeting the Trade and Development Bank syndicated loan, of which the amount due of Ksh173.8 billion will decline to Ksh58.97 billion. No changes have been instituted to the allocations for pensions, salaries, and allowances for constitutional and independent office holders and other miscellaneous expenditures. Cumulatively, these expenditures will remain at Ksh246.97 billion. The Committee observes that the current gains from liability management operations, though welcome, should be anchored in a robust policy framework. The absence of a comprehensive national liability management policy has limited the strategic deployment of debt reorganisation tools such as repayments, swaps, and restructuring. Formalising such a policy will allow the National Treasury to plan proactively, reduce financing risks, and better align fiscal outcomes with the country's long-term development agenda."
}