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{
    "id": 349964,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/349964/?format=api",
    "text_counter": 711,
    "type": "speech",
    "speaker_name": "Mr. Githae",
    "speaker_title": "The Minister for Finance",
    "speaker": {
        "id": 159,
        "legal_name": "Robinson Njeru Githae",
        "slug": "robinson-githae"
    },
    "content": " Mr. Deputy Speaker, Sir, I beg to move the following Motion:- THAT, this House adopts Sessional Paper No.15 of 2012 on the Kenya Government Guarantee of a loan of US$93,000,000 equivalent to Kshs7,994,280,000 from European Investment Bank to Kenya Airports Authority for the Rehabilitation and Expansion of the Jomo Kenyatta International Airport laid on the Table of the House on Tuesday 18th December, 2012. Mr. Deputy Speaker, Sir, I will be very brief. Again in accordance with the Public Finance Management Act, Laws of Kenya, Parliament is required to approve any guarantee and that is why I was particularly happy when Mr. Onyancha gave out the details that this was for planning purposes. Any guarantee of loan requires approval from Parliament and that is exactly what I am doing here. I am asking Parliament to approve and I want to move that this House adopts Sessional Paper No.15 of 2012 on the Kenya Government guarantee of a loan of US$93,000,000 which is equivalent to Kshs7,994,280,000 from European Investment Bank to Kenya Airports Authority (KAA) for rehabilitation and expansion of Jomo Kenyatta International Airport (JKIA) laid on the Table of the House on Tuesday, 18th December, 2012. Kenya Airways is a fully owned Government institution and it has embarked on rehabilitation of aprons and construction of additional passenger terminals and the car park. It has successfully negotiated this loan from the European Investment Bank for the expansion of the JKIA so as to enhance passenger capacity from 2.5 million to 9.3 million. Mr. Deputy Speaker, Sir, I will just give you brief details of the loan which will be of interest. The interest rate for the loan is based on the European Investment cost of funds plus a margin of 0.5 per cent. There is also an additional charge of a commitment fee of 0.5 per cent. You cannot get anything better than this. If the House approves this Sessional Paper then the Government will guarantee the loan. This was a condition from the European Investment Bank that the host country must guarantee any investment that they make in each country. That is why we are asking this august House to approve this Sessional Paper to enable us now to issue a guarantee to European Investment Bank. The KAA is expected also to augment the total project financing by about 30 per cent. This means that they must also raise Kshs4.5 billion in overall expansion of JKIA. I wish to confirm to this House that as Treasury we have looked at their cash flows, their commitments, their past performance and we have no doubt that they will be able to repay this loan on their own. Even if we are guaranteeing, they will be able to pay. One of the reasons why you people are saying that I have been successful, what I have done is that I have freed companies that can be able to access funds on their own to do so and not come to Treasury. That is the directive I gave. Therefore, Kenya Power, KenGen, Kenya Airways and all the other companies will not get finances from Treasury. If the company is in a position to meet its obligations or repay their loans, they go the private sector and borrow. Therefore, I am only left to finance those sectors that are needed socially or for"
}