Entry Instance

HTTP 200 OK
Allow: GET, PUT, PATCH, DELETE, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept

{
    "id": 509243,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/509243/?format=api",
    "text_counter": 326,
    "type": "speech",
    "speaker_name": "Hon. G.W. Omondi",
    "speaker_title": "",
    "speaker": {
        "id": 1169,
        "legal_name": "George Washinton Mallan Omondi",
        "slug": "george-washinton-mallan-omondi"
    },
    "content": "do not know whether it is the rebasing of our Gross Domestic Product (GDP) or the expected flow of revenue from the oil. These are just illusions and it will be important that Treasury provides more information. The Mover of the Motion went through the projects that need to be done which he called the justification; he went through the LAPSSET, the 10,000 Kilometer road and the irrigation to be done from external borrowing. What he failed to do is; we can do all these things but unless we address the issue of insecurity, which should be factored in, we will never experience growth because people will shy away from investing in our country. When I say that the Treasury should give us more information about the request, I mean that Treasury should provide us with the prevailing economic fundamentals that justify the request for this increase in our debt ceiling. As I said earlier, it is not bad to borrow, but I would like to say the amendments that were suggested by some of my colleagues in the Budget and Appropriations Committee should be looked into, so that we do what we are convinced is good for our country. Another danger that we have is that all these projects which have been put, we have been told that they will cost over Kshs. 5 trillion but we are told, we are only borrowing about Kshs.2.5 trillion. There is nothing as bad as doing business with less money. You go to a bank looking for Kshs.1 million and you are given Kshs.500,000. That is a recipe for failure. We will have most of these projects done half way and we will be stuck there. So, it is important that this Paper shows us what we are going to spend on each project and if we are borrowing, we borrow enough money to complete the projects. If we borrow Kshs. 2.5 trillion we will be hanging there and borrow even more. I heard of a justification from my good friend, the Chairman of Finance, Planning and Trade Committee on America’s debt ratio. America borrows in its own currency; it borrows in dollars and pays in dollars. So, there is no danger. There is no way we can compare ourselves with America. They can print the dollars to pay. The debt crisis of 1980s and 1990s that bedeviled the Latin American countries is still too fresh in us. Let us be careful. We do not want to borrow just because we can borrow. Borrowing is the easiest bit, but managing it, applying it and being prudent in managing it is the most important thing. These are the short falls in our country. I will say, let the amendment be brought. Let us borrow to be able to grow our economy, but let us not go wholeheartedly because as my colleague said, the future generation will judge us harshly, if we saddle them with debt that is not productive at all. With those few remarks I will not support the Motion as given."
}