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    "id": 62124,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/62124/?format=api",
    "text_counter": 313,
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    "content": "debts is to be very cautious in accessing loans; we prioritize grants. Second to grants, we go to what is called concessionary loans. Concessionary loans are received and negotiated with multi-lateral institutions like the World Bank, the African Development Bank (ADB), the Japanese Development Bank, the Chinese Development Bank and so on and so forth. These are loans which are for long-term; they are concessionary in the sense that the interest rates are very low, that is between 1.5 and 2 per cent, and with grace periods of up to ten years and repayable for over a period of say 40 years. These are the type of loans which we give priority. Mr. Temporary Deputy Speaker, Sir, but when we cannot fill the gaps with those concessionary loans, then we go for commercial loans. But we take these loans very cautiously; the ones which are received from foreign banks sometimes appear to be cheap in terms of the low interest rates, but they are expensive because of the foreign exchange fluctuations. As you are aware, you end up paying more money than if you had a local loan with higher interest rate. Mr. Temporary Deputy Speaker, we also have what is called “domestic debts”. Domestic debts are incurred in terms of issue of bonds and bills, which are either short- term or short-term, when we come to bonds. We have started now issuing what are called “infrastructure bonds”. These are long-term bonds with a life of between 15 and 20 years. The first one which we floated was in last year; it was for about Kshs16.5 billion, and we got over subscription. When we floated it first we thought it was not going to be a success. The second one which we issued for Kshs26billion was also very successful. It was also over-subscribed. Mr. Temporary Deputy Speaker, Sir, we seek the support of the House. In fact, very soon we will be coming to the House to increase our debt limit, which is because the economy is expanding. Our Budget requirements are expanding and, therefore, we need to increase the limits of our debt levels. All the information required here--- We want to say that we will provide it as demanded by the Mover of the Motion. We will provide all this information through the House Budget Committee within seven days. We have all this information available in our publications, which are already available. Some of it is in our records which we shall readily avail to the House. Thank you, Mr. Temporary Deputy Speaker, Sir."
}