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{
    "id": 1593009,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1593009/?format=api",
    "text_counter": 477,
    "type": "speech",
    "speaker_name": "Wajir East, JP",
    "speaker_title": "Hon. Aden Mohammed",
    "speaker": null,
    "content": " Thank you, Hon. Deputy Speaker. I also rise to support this Report. I am a Member of the Committee that prepared the Report. A lot has been said about the Report by other speakers, but I would like to highlight one thing. This House passed a debt strategy mix of 75 per cent domestic borrowing and 25 per cent foreign borrowing in our Medium Term Debt Strategy (MTDS). The problem with our budgets and getting money from the Consolidated Fund Services is that tax collection is not timely. We always have a problem with our tax collection and, therefore, we use domestic borrowing to buttress our tax collections. In its Report, the Committee is urging the National Treasury and the Central Bank of Kenya (CBK) to front-load domestic borrowing, so that our cash flow does not become a problem. Many ministries and departments are used to a lack of cash flow or Exchequer releases from the National Treasury. We lack timely Exchequer releases because our cash flows do not come at the time when ministries and departments need them. The second issue is securitisation. This Report mentions that the national government is using a new “animal” called securitisation, which means borrowing upfront using expected revenues. An example of securitisation that this country has done so far without parliamentary approval is that of the Road Maintenance Levy Fund (RMLF) of Ksh7 by the Kenya Roads Board (KRB) to pay pending bills. This kind of borrowing brings contingent liability. We borrow for 10 to 15 years on monies that we think will come from our RMLF. As a country, we are going green. Our President is the Chairperson of the Committee of African Heads of State and Government on Climate Change (CAHOSCC). We are encouraging our vehicles to be electric or to go green. Yet we are borrowing on monies thinking that we will be using Ksh7 The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}