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{
    "id": 778196,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/778196/?format=api",
    "text_counter": 275,
    "type": "speech",
    "speaker_name": "Hon. Ng’ongo",
    "speaker_title": "",
    "speaker": {
        "id": 110,
        "legal_name": "John Mbadi Ng'ong'o",
        "slug": "john-mbadi"
    },
    "content": "So, Madam Temporary Deputy Speaker, I can teach you. Tell me if the growth was not 5.3 per cent and tell me if the East African region did not grow at 5.9 per cent. The 5.9 per cent is the growth in the East African region and 5.3 per cent is the growth in Kenya. Tell me if there is any other figure different from that. That is why I said that because Kenya is below average, Kenya is pulling other countries down. It is simple logic. I have talked about inherent weaknesses in the agricultural sector. I have mentioned corruption. Where is Galana Kulalu which was talked about? It is killed by corruption! Then you tell us you want to improve agriculture when you cannot even handle a simple flagship project! The Jubilee’s flagship project from 2013 to 2017 was Galana Kulalu yet they are no longer talking about it because of shame. It is dead! Our money has been eaten! Money was borrowed and put into this project and it has been wasted. With regard to macroeconomic stability, we are facing significant pressure from the budget deficit and debt accumulation besides existing expenditure pressures, making it difficult for us to pursue any meaningful steps towards fiscal consolidation. I just want to summarise this because it is a long one. I want to summarise it so that those who do not understand may also understand. As the Leader of the Minority Party, I have an obligation to warn Kenyans as follows on debts: Let us look at the BPS, which I did not prepare. It comes from the Treasury. From my further research, I have realised that our debt repayment in 2018/2019 is going to increase by Kshs316 billion. That is a fact from the BPS, yet projected increase in ordinary revenue which is basically the tax that we collect to run this country is going to increase by Kshs200 billion. What are you saying in short? That the increase in debt repayment this coming financial year is far much more than the increase in revenue collection that we project. That is even with the assumption that we are making. This clearly indicates that we will soon not be able to service our debts. We have just borrowed Kshs200 billion from the sovereign bond market, the Eurobond. Unfortunately, this is what the Treasury has not told Kenyans, and I want to tell it to Kenyans. In 2014, when Eurobond was first floated, we sold Eurobond at 5.875 per cent. The recent Eurobond was sold at 8.25 per cent, yet a country like Egypt in the same month, from the same market, sold their Eurobond at six per cent. Nigeria, which is another African country, within the same market and same month, sold at 6.7 per cent. The Treasury must tell us why they sold our Eurobond at a higher interest rate of 8.25 per cent because Kenyans are going to pay. By the way, in domestic market, bond is sold at 8 per cent. But to make it worse, this Kshs200 billion, for those who are not aware, only half of it is coming to this country. About Kshs100 billion is going to be used to pay a syndicated loan that we had taken, which loan is due for payment next year. So, we are effectively just bringing Kshs100 billion to this country and not Kshs200 billion. Those people who are saying that we have borrowed this money for development, better be warned. We have not borrowed it for development. Half of it is going to be used to pay loans The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}