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"id": 993186,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/993186/?format=api",
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"type": "speech",
"speaker_name": "Sen. Sakaja",
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"id": 13131,
"legal_name": "Johnson Arthur Sakaja",
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"content": "(3) Measures to cushion borrowers through a moratorium on repayment of loans, interest and penalties, freeze on execution for borrowers who might have defaulted on their loans due to the COVID-19 situation, where it can be proven, and on listing by credit reference bureaus. (4) The macro-economic effects, including addressing economic shocks arising from loss of export markets of commodities, as well as a drop in our tourism numbers. (5) The drop in remittances by Kenyans abroad and in Foreign Direct Investments (FDI), and fiscal space for additional Government borrowing. Mr. Speaker Sir, having analyzed the issues and concerns raised by the public, the Committee met and deliberated with the following stakeholders. Under Government agencies and independent offices, we sat with the CS of the National Treasury and Planning, the CS of Industrialization, Trade and Enterprise Development, the Council of Governors (CoG), the Controller of Budget, and the Governor of the Central Bank of Kenya (CBK). Within the private sector, we had extensive deliberations with the Kenya Bankers Association (KBA), the Kenya Union of Savings and Credit Cooperative Societies Limited (KUSCCO), the Kenya Association of Manufacturers (KAM), the Small and Medium Enterprise Federation (SMEF), the International Budget Partnership Institute for Public Finance of Kenya (IBPIPFK), and the Institute of Social Accountability (ISA), among others. Mr. Speaker Sir, based on our analysis of the written memoranda because very many Kenyans responded, more than 160 submissions were received, we have made substantive observations and recommendations for adoption by this House. I hope that Senators will be able to interact with this report that has been available since we tabled it and contribute to it so that we can make serious and specific recommendations to the national and county governments. For the current situation, we observed that there is significant negative impact on key sectors. Trade, tourism, manufacturing and agriculture are worst hit. The preliminary growth for Kenya in 2020 is projected to decline to around 3 per cent. If the extreme shock persists, growth is likely to drop further to below 2.5 per cent, as global demand remains weak. In fiscal years, growth is estimated at 4.4 per cent for Financial Year 2019/2020, and 4.6 per cent for Financial Year 2020/2021. That was the initial objection. I remember this is coming down from above 5.5 per cent. In fact, in reality with these discussions, even the National Treasury, said that realistically, if we are fortunate, the economic growth will be around 1.8 per cent. The last time we were at such a growth level was 2008, after the post-election violence. The effects on the economy have taken many years to recover. Remember, in the previous year we had gotten to 7.1 per cent. Mr. Speaker Sir, the agricultural sector has been heavily affected by the pandemic. There is reduced export earnings and loss of income due to low global demand for agricultural exports, especially horticulture, tea and coffee, among others. The foreign exchange market, however, fortunately remains stable, supported by continued narrowing in the current account deficit. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor, Senate."
}