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{
    "id": 435187,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/435187/?format=api",
    "text_counter": 406,
    "type": "speech",
    "speaker_name": "Hon. Njenga",
    "speaker_title": "",
    "speaker": {
        "id": 1510,
        "legal_name": "Francis Kigo Njenga",
        "slug": "francis-kigo-njenga"
    },
    "content": "not addressed by legislation. The proposed law will address the anomalies that have been facing our country. Most importantly, the smoothening and action, if implemented, would have a positive interface with the liquidity of this country. Borrowing Kshs13 billion worth of bonds to settle a Kshs65 billion debt or thereabout leaves us with an exposure to a further Kshs165 billion. If this money comes to the economy, it will give exposure to money that is available for borrowing by businessmen. If you remember the simple law of demand and supply, the supply of the money that is available for borrowing by our people, especially businessmen and farmers will reduce the cost. Once the supply is higher, it will reduce the cost of funds. When the cost of funds is reduced, we expect that our businessmen and farmers will borrow money cheaply. If money is borrowed cheaply and it is in adequate supply, banks will also be forced to also reduce interest rates, thus raising supply much higher. This cheap money will increase the profits of our people. When profits increase, the benefits are immense. We have been talking about the Value Added Tax (Amendment) Bill; we have just passed it and as we improve the purchasing power of our people, we are going to increase the amount of money that we can raise through the VAT. Even Corporation Tax will increase money. Once this is done, people will be able to borrow a little money and do business and things like crime will also come down. I have just come from a global partnership high level meeting in Mexico City; despite the earthquake that found me there, I can tell you that the countries of the world numbering 169 want to rely on local funding to their people instead of foreign funding. So, when such money comes here, it will also make the local money available to our people. This will also help the country from a macro perspective, in that instead of borrowing from the local people, they will also borrow from outside there and leave that exposure to us. This will also make us competitive. In the African region, especially the East African region, there is a lot of competitiveness that is coming. If you look at Uganda, Tanzania, Rwanda and even Burundi when doing business with us, they have some advantages over us. For example, in Uganda, electricity should be cheaper than in Kenya. But with funds and having been ahead, we will be in a position to compete with such people, increase employment and raise the economic standards of our people. This is an important move. Such actions relocate resources to better sectors of our economy. That is an advantage that can be derived by improving the Public Finance Management Act through this amendment. If this is done and resources are relocated to where they should be, we shall attain our dream of Vision 2030 easier and much faster. Then the double digit economic growth dream will be attained. I would like legislation to be brought to the Floor of this House to smoothen things that will enable our people do business smoothly and make Kenya a better place to live in socially and economically. I support this and think that the Public Finance Management Act has many other loopholes that require to be sealed. The Chairman should bring proposals to the House, so that we can improve on it. I support."
}