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{
    "id": 509241,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/509241/?format=api",
    "text_counter": 324,
    "type": "speech",
    "speaker_name": "Hon. Lati",
    "speaker_title": "",
    "speaker": {
        "id": 2762,
        "legal_name": "Jonathan Lelelit Lati",
        "slug": "jonathan-lelelit-lati"
    },
    "content": "remain at 6 per cent of the Budget deficit. If this happens, we might break even. Unless we expand our economy, it is not looking very good. Our economy, as you can see, is subdued. We are growing at about 6 per cent. I am hoping that with this kind of intake of big infrastructural projects and dollars coming in, we can put it into the right capital expenditure, so that our economy can grow in reference to the Jubilee Manifesto of more than 10 per cent. I believe in that. For the people who know what the GDP is, it is actually expenditure. If we bring this money in, there will be a lot of expenditure, particularly investment expenditure, which is the right thing to increase the GDP. The other way out is to increase absorption. We can bring all this money into this country, but if you look at the absorption rate of our Ministries, particularly our counties, it is low. Money does not help if it remains in the bank. It does not help if it is used for consumption. It can only help if you look at the GDP framework and it is taken into investments or net exports. I am hoping the issue of getting lots of money with very small capacity, particularly in the counties, is going to go away. Otherwise, we are going to have a huge debt, a lot of money that is lying around with very little absorption capacity and we end up paying interest. We have to pay interest at the end of the day. We also have to make sure that we maintain a Budget surplus. The Central Bank of Kenya’s monetary policy plus the fiscal policy of our country must now be managed very prudently.We are not getting Kenya shillings in these notes; we are getting dollars and other monies. So, there is the exchange rate risk that is inherent with the kind of loans that we are taking. So, as I support this ceiling which is very important for expansion of our economy, I also want to ask those people who are concerned with our monetary policy to make sure that things like inflation are controlled. With the kind of expansion we are making, we might have uncontrolled inflation. A few days ago, I heard someone complaining that there is very little money in the country. But with the inflows of bond proceeds and other monies coming from China, the risk is, we will have inflation in the country, which is not good when you are trying to pay loans. With the inflationary pressure, you may also expect the exchange pressure when you will be paying these loans in dollars. Article 201 says you must share this burden of debt with our future generations. The only way we might share these burdens with our future generations, is to make sure that we do not accumulate debt interest that is bigger than the investment opportunities that we give the future generations. The future generation will benefit from the LAPSSET and the Standard Gauge Railway. For the first time, being a Member of the Northern Frontier District as it was called, we know what happened in Kenya before and after Independence. Most of Kenya’s economic activity runs along the railway that was built in the early 19th Century from Mombasa to Uganda. Some of us who live in the northern part of the railway---"
}