Entry Instance

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

{
    "id": 804958,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/804958/?format=api",
    "text_counter": 23,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "This must concern us as the Senate and the legislative arm of this country and the oversight body that oversees this. The Budget Review and Outlook Paper released showed an upward revision of the budget deficits as well. It was Kshs691.2 billion from Kshs750 billion, excluding grants from the previous year. I, therefore, wish to draw the attention of the Senate to this matter that is likely to affect how much it costs for us to borrow from international markets, but also the debt affordability which will deteriorate as reflected by the increase in government interest repayments. That means that we will forever be paying interest rates at the expense of development financing and our recurrent expenditures will go through the roof. If the debt itself is Kshs5 trillion, the repayments on these debts--- Genghis Capital had estimated that we will be using more than 50 per cent of our revenues to finance these debts. Mr. Speaker, Sir, this is of concern to us and should be of concern to this House whose mandate is to steward public finances as well as ensuring that our country is a going concern. If the ratio is unhealthy, it means that there will be a meltdown of our economy, going forward. In the last financial year, our debt to the Gross Domestic Product (GDP) ratio was between 40 to 50 per cent. I am told that it is now hitting 60 per cent. Beyond 58 per cent is a cause for concern to the country. If we exceed the threshold of 58 per cent, we will not be able to finance our obligations in terms of the repayments of the principle as well as the interest rate. As a Senator, I am concerned that this country is mortgaging its future. The fact that our banks, especially the Kenyan based banks have been downgraded is a cause for concern. I thank you, Mr. Speaker, Sir, for giving me this opportunity to highlight this issue of topical concern. Today being the day that the Budget will be read by Treasury Cabinet Secretary, this House should take this issue seriously. The committee that deals with finance and public accounts should ensure that we do not sit yet there is a meltdown in our economy. Thank you."
}