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{
    "id": 842933,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/842933/?format=api",
    "text_counter": 175,
    "type": "other",
    "speaker_name": "",
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    "content": "the limit of our debt. This country is not just inherited from our parents, but it is borrowed from our children. The burden of debt must be shared equitably across all generations. Especially in this day and age of “handshake”, can we sit down and look at the sustainability of our debt? Most economists just look at the debt to GDP ratio, but the more important ratio on the sustainability of debt is the Debt to Income (DTI) or in the economics of our country we can call it Debt to Revenue (DTR) ratio. As I speak, it is already above 51.5 per cent. What that means is that more than half of the revenue that we collect today is used to service our debts. What does that do? That will put pressure on cash flows and make sure that even though we pass a Cash Disbursement Schedule, our county governments will not be able to get the right amount of money at the time when that money is needed in the counties. I hope that the Chairperson of the Committee on Finance and Budget can lead us in the process of actually suggesting ways of balancing, spreading out and re-amortizing some of these loans and talking to some of our bilateral and multilateral partners, who have given us some of these facilities. This will ensure that we do not have undue pressure on cash flow and there will be enough money for devolution in the counties, where it is supposed to be. So, it is within the structure and not necessarily the amount. We now have more reliance on commercial debt, which creates an immediate strain and pressure on paying interest and servicing those loans. We do not have the kind of grace period that we can get in bilateral or multilateral borrowing. We must make sure that our counties are properly structured to deliver. As the Senate, we have not been able to play our role properly in terms of how our counties are structured and operate. The Senate is where intergovernmental relations are supposed to be domiciled, but so many times the national Government has flown above the head of the Senate and entered into agreements with county governments that the Senate has no clue about. We must create legislation or a way through which the Senate is involved right, left and center. My county, for instance, has the Nairobi Regeneration Plan that the national Government and the county government are working on. It is very good and we are happy that the national and the county government have agreed on things to be done in Nairobi. For instance, it is good that the Kenya Urban Roads Authority (KURA) has done roads in Eastlands and we are waiting for them to go to the other parts of the City. But we cannot have such a plan that the national Government is supporting, yet the Senate has no clue and is not involved. We do not know the extent of that support, despite the fact that the Constitution says clearly that for the management of cities like Nairobi, Kisumu and Mombasa, there must be a written agreement and arrangement between the national Government and the county government. Where is the agreement and arrangement between the national Government and Nairobi City County, if the Senator for Nairobi County has not seen it? Unless we play our part, we will not be able to oversight many of these arrangements that are happening in the counties. Mr. Deputy Speaker, Sir, the Urban Areas and Cities Act provide for city managers; that you can step down devolution to the lowest level that you can. The only The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}