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{
    "id": 26412,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/26412/?format=api",
    "text_counter": 400,
    "type": "speech",
    "speaker_name": "Mr. Kimunya",
    "speaker_title": "The Minister for Transport",
    "speaker": {
        "id": 174,
        "legal_name": "Amos Muhinga Kimunya",
        "slug": "amos-kimunya"
    },
    "content": "Mr. Temporary Deputy Speaker, Sir, the point I wanted to make here is that even as we talk about what the national Government can borrow, because there is confusion in this matter, and we might confuse people who are listening to us in the counties that the national Government will only be borrowing some things for certain areas, every county government has the capacity to borrow and nobody is stopping that. This law is about: Should a county government or parastatal or one of the Government agencies want to borrow, under what mechanisms would the Government then come to Parliament to say, yes, we, as a Government, are prepared to take the risk of guaranteeing this loan being borrowed by a certain person? The onus of proving the viability of the loan is on the entity borrowing to prove that viability to the lender. If, for example, Nyandarua County was to go to the World Bank or the African Development Bank (ADB) and say: “We would like to borrow so much money to construct Nyandarua County Council Headquarters,” the first thing that will have to happen is that Nyandarua County Government would have to, first of all, go through an assessment by the lender. You go to the national Government for sovereign guarantee once you satisfy that criteria. This will address the issue that Ms. Karua has very eloquently addressed, that parastatals have ended up borrowing in the past without proper financial analysis and the debt has then been forced on the national Government. The national Government will do its secondary analysis of that loan to. It will say that this entity has satisfied the lender, but are we, as a Government, satisfied that it will be able to pay that in future? I do believe that the whole issue about “likely to be sustainable” comes into play because, obviously, the matter is futuristic."
}