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{
    "id": 947013,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/947013/?format=api",
    "text_counter": 237,
    "type": "speech",
    "speaker_name": "Garissa Township, JP",
    "speaker_title": "Hon. Aden Duale",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "high time policy makers at the National Treasury reconsidered this aspect. We urge them to reconsider revisiting the macroeconomic targets that underpin the East African Community (EAC) Convergence Framework under the EAC union arrangement since, as a country, we are not at the same level with those other countries. The national debt sustainability threshold indicates that the national debt level remains sustainable. That is very critical. As long as our country’s national debt level is sustainable, we are doing very well. Why do I say so? Kenya’s Financial Year 2019/2020 debt to GDP level is projected at 59 per cent against a debt ceiling threshold of 74 per cent. In present value terms, this is projected to fall to 53 per cent by 2022 and continue to decline in subsequent years. So, our debt level will keep on declining because the more we invest in serious infrastructure programmes like energy, roads, rail and airports - the drivers of the economy - the more the gains will be realised in the long term. So, we might borrow now, but in future, we will see the achievement. Those of us who were in the 10th Parliament, when retired President Kibaki and the former Prime Minister Raila Odinga were investing in the Thika Superhighway, thought that they were joking. Today, the duo is remembered for that superhighway and many key energy projects. Why did the Government want us to move from 50 per cent of GDP to a number like Kshs9 trillion? This was necessitated by the need to have a very clear and precise threshold that can be used for decision-making and more so by Members of Parliament. The National Treasury tables the debt management strategy quarterly. We will now be in a position to collectively and individually monitor the numbers, but you cannot monitor a percentage. Therefore, going forward, the National Treasury will table a report telling us: “This is the amount of money we have so far borrowed and this is how we are managing the debt level.” This is good for parliamentary oversight. The National Treasury will be providing an express threshold that the National Assembly can use to gauge the debt performance and how we are doing compared to the projects we borrow for. We can then proceed, as a House, to make the necessary applicable resolutions. Setting the limit to a figure does not negate the consideration of the GDP in review of debt performance. When we change from a percentage of the GDP to the figure, it does not affect how we review our debt performance. That must come out clearly. This House is aware that the GDP remains fundamental in borrowing, debt performance and determination. The GDP is always important for debt performance, determination and borrowing. In fact, if we agree to go that route this afternoon, this will greatly apply during the approval of the medium-term debt strategy which makes Kenya a country with a sustainable debt level and borrowing positions. The amendment by the Committee on Delegated Legislation, with the supporting documents from the Budget and Appropriations Committee, has been necessitated by the need to meet and create a balance between debt accumulation and the expenditure needs of our country. We are trying to balance. How much did we accumulate? What is our debt accumulation? We should balance it with the expenditure needs of our country. It is like we are doing a scale. As of today, the national debt has risen to Kshs5.8 trillion. The country still has expenditure needs which are key to ensure that the Big Four Agenda is achieved. We are at Kshs5.8 trillion today, but we have to look at the four key agenda items and projects. Some of these projects are historical. The funding by the World Bank supports projects such as the road from Meru to Kula Mawe to Isiolo to Wajir to Mandera; the road from the Mau Summit all the way to western Kenya as a dual carriage and the expansion of the Standard Gauge Railway (SGR) from 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."
}