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{
    "id": 349895,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/349895/?format=api",
    "text_counter": 642,
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    "content": "House passes this Motion. Hon. Members are aware that to achieve the objectives under vision 2030, we need external assistance mostly in the area of infrastructure comprising of energy, roads and water among others. Infrastructure for counties also needs to be financed and as this House will recall this morning, we gave quite a substantial amount to the counties. To access external borrowing without violating the law, it is necessary therefore to enhance the ceiling. I wish to emphasise that the high ceiling is for planning purposes only. Again, I want to emphasise that the ceiling is for planning purposes only and the loans to be contracted will be subjected to scrutiny by the National Assembly as per the Public Finance Management Act. Mr. Deputy Speaker, Sir, finally, I wish to assure this House that the concerns raised on the utilization of the proceeds from external loans and grants are receiving serious attention by the Government. The recently passed Public Finance Management Act has elaborate provisions to strengthen public finance financial management including periodic reporting to this House of Government borrowing levels. Regulations to operationalise the Public Finance Management Act are under preparation and will be approved by this House. In conclusion, I wish to state that in the specific area of debt management, reforms have been undertaken over the last nine years and are continuing. The Public Finance Management Act provides for the establishment of Public Debt Management office within the national Treasury. The Public Finance Management Act also requires tabling in Parliament by February of each year of medium term debt management strategy consistent with budget policy statement. This will enable the House to interrogate Government if there is any deviation from this strategy. Mr. Deputy Speaker, Sir, with the foregoing assurance, I beg to move that pursuant to Section 50(2) of the Public Finance Management Act 2012, the ceiling of the total indebtedness in respect of principal amount of money borrowed or credit obtained be raised from US9.3 billion which is equivalent to Kshs800 billion to US$14 billion which is equivalent to Kshs1.2 trillion which will be made up as follows: The current ceiling is Kshs800 billion. The ceiling to cater for new loans is Kshs350 billion. Increase to cater for possible cross currency fluctuations is about Kshs50 billion. The total is Kshs1.2 trillion. So, you can see that basically this is for planning purposes only and whatever else debt under the Public Finance Management Act must be brought here to Parliament for interrogation. With those few words, I beg to move and ask Prof. Anyang’-Nyong’o to second this important Motion. I thank you."
}