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{
    "id": 993187,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/993187/?format=api",
    "text_counter": 158,
    "type": "speech",
    "speaker_name": "Sen. Sakaja",
    "speaker_title": "",
    "speaker": {
        "id": 13131,
        "legal_name": "Johnson Arthur Sakaja",
        "slug": "johnson-arthur-sakaja"
    },
    "content": "Reduced demands for Kenyan exports and declining prices for commodities in the international markets, compounded with a drop of tourist arrival in the country has led to great revenue loss, lowering our foreign reserve and exerting pressure on the shilling. The official foreign exchange reserves held by the Central Bank of Kenya (CBK) stood at five months of import cover. Ideally, we should be having six months import cover in US dollars, and that was in February 2020. That went down from 5.4 percent imports cover in February 2019. There is cause for concern there. The ordinary revenue collection amounted to 11.7 per cent of the Gross Domestic Product (GDP), which is Kshs1.2 trillion against a target of Kshs1.3 trillion, recording a shortfall of Kshs132 billion of the target already. Mr. Speaker Sir, ordinary revenue has gone up by 4.2 per cent. During the period to March, 2020 compared to 9.1 per cent growth over the same period in the previous year. The shortfall in ordinary revenue collection from the target Kshs132.3 billion was recorded in all broad categories with excise taxes recording a short fall of Kshs35.2 billion. Other categories that performed below target were income tax by Kshs39.2 billion, import duty Kshs17.8 billion and Value Added Tax (VAT), Kshs34.8 billion. Mr. Speaker, Sir, unfortunately, there has been a decline in remittances by Kenyans living abroad which has reduced the foreign currency inflow occasioning our exchange rate to depreciate against major international currencies. When we filed this report last Tuesday, the Kenya shilling was at trading 107.6 against the dollar. I am sure before I finish, Sen. M. Kajwang’ will tell us how much it is now. Mr. Speaker, Sir, overall, fiscal deficit including grants for the period ending March 2020, was Kshs449.6 billion which is 4.3 per cent of GDP funded through net foreign financing of Kshs87.0 billion, net domestic financing of Kshs360.4 billion and other domestic financing including loan repayment receipts at Kshs2.2 billion. The National Treasury continues to engage multilateral and bilateral partners on funding interventions. Mr. Speaker, Sir, on top of those funding interventions, there has been engagement on debts swaps with development partners and restructuring the public debt. We have made specific proposals on that. The assertions was the debt remains at the level estimated at Kshs6.2 trillion which 58 per cent of GDP which is below International Monetary Fund (IMF) and World Bank debt sustainability assessment, a threshold of 74 per cent. However, we have encouraged the National Treasury not to take comfort in those numbers as at this point. Mr. Speaker, Sir, if I go beyond that and leave these details, the concern that we observed on pending bills by county governments and the national Government is real. It is hampering a lot of business growth and many businesses are suffering. Through Second supplementary estimates, the Government is addressing the national Government pending bills amounting to around Kshs13 billion. However, as of 30th April, 2020, county governments have a balance of Kshs16 billion in pending bills and the national Government has eligible pending bills of Kshs34.9 billion leaving an outstanding balance of Kshs16.3 billion. That is a huge number. 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."
}