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{
    "id": 435398,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/435398/?format=api",
    "text_counter": 186,
    "type": "speech",
    "speaker_name": "Hon. Kang’ata",
    "speaker_title": "",
    "speaker": {
        "id": 1826,
        "legal_name": "Irungu Kang'ata",
        "slug": "irungu-kangata"
    },
    "content": "Thank you, hon. Speaker. I rise to support this Bill. I am supporting it because Kenya is about to rebase its calculation for GDP. When that happens, the effect will be that Kenya will be in a better position to borrow externally. Kenya never had a situation where it could borrow money from private entities and banks. After the rebasing of the GDP, Kenya is set to become a middle-income country. In a scenario where we are a middle-income country the effect will be very positive in terms of attracting investment and credit worthiness of the country as a whole. We shall be fourth largest economy in this Africa. That is after Nigeria, which is said to be No.1, South Africa and Egypt. In my own opinion, this is progress taking into account that we have other countries in Africa which are rich in oil. For instance, we have Angola and Libya. When we are a middle-income country and then you do not have capability to borrow externally by issuing bonds in the open market, then it does not make sense. The Public Finance Management (Amendment) Bill, 2014, once enacted will enable Kenya to borrow from the open market. As a result, I would imagine Kenya will be able to increase its expenditure on infrastructure, and attain goals which will enable it comply with the Millennium Development Goals (MDGs), which are set to be appraised again in 2015 or thereabout. As a country, we are planning to achieve proper development by 2030; we need such a law that enables this country to borrow in the open market externally. Hon. Speaker, I have seen interventions by colleagues on the other side, and with due respect, I think their interventions were misplaced. One of the issues raised relates to the ability of the Government to issue a cheque directly in the international fora without reverting to the Central Bank of Kenya (CBK), or the National Treasury here in Kenya out of a dollar account or international accounts which will be generated upon enactment of this Bill. In my opinion, that is something that is positive. It is positive to the extent that it will lower what we call transactional costs. The idea of the country keeping on reverting to a central entity to make international payments is outdated. In a globalised world, or in a world where haste is very crucial, we need to come up with laws which enable the country to make international settlements easily, efficiently and that are aligned to the modern day international trade practices. I to support and thank you. 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."
}