{"count":1608389,"next":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=157391","previous":"http://info.mzalendo.com/api/v0.1/hansard/entries/?format=json&page=157389","results":[{"id":1592092,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592092/?format=json","text_counter":449,"type":"speech","speaker_name":"Hon. Deputy Speaker","speaker_title":"","speaker":null,"content":"Members who want to contribute, please press the intervention button. I will give a chance to Hon. Kwenya."},{"id":1592093,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592093/?format=json","text_counter":450,"type":"speech","speaker_name":"Kinangop, JP","speaker_title":"Hon. Kwenya Thuku","speaker":null,"content":" Thank you, Hon. Deputy Speaker, for this opportunity to support this Report from our Committee. For purposes of bringing it to the attention of Members, CFS expenditures are not appropriated in this House, but they are The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."},{"id":1592094,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592094/?format=json","text_counter":451,"type":"speech","speaker_name":"Kinangop, JP","speaker_title":"Hon. Kwenya Thuku","speaker":null,"content":"brought to the attention of the House for passage and adoption. The CFS expenditure consists of pensions, debt repayment, salaries for independent commissions, and the salaries of the President and the Deputy President. The biggest expenditure of the government is CFS. We have a Budget of about Ksh4.4 trillion and a half of it is going to repayment of debts, pensions and salaries of independent commissions and constitutional offices. This brings the million-dollar question of how we are managing our finances and debts. A chunk of our revenue is going to the repayment of debt. Of the amount, Ksh1.9 trillion, the largest component, is for repayment of interest and commitment fees for loans that have been signed but not taken simply because the entities expected to absorb the funds have not done so. As a result, we find ourselves paying commitment fees to lenders, which has now become a critical expenditure in the CFS."},{"id":1592095,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592095/?format=json","text_counter":452,"type":"speech","speaker_name":"Kinangop, JP","speaker_title":"Hon. Kwenya Thuku","speaker":null,"content":"Something else we were able to look into while engaging the National Treasury is that one of the loans taken over by the government on behalf of Kenya Airways (KQ) has been novated, to the extent that the Government of Kenya has undertaken to repay it. As a Committee, we asked very pertinent questions. Why would the Government of Kenya be paying debts on behalf of profit-making entities like KQ? The burden is being passed over to Kenyans to pay at a premium rate. This is not just unacceptable but it is something we need to interrogate further. Why should KQ investors enjoy dividends and perks yet they cannot meet their loan obligations? While it has not been captured in this CFS as a standalone loan taken over by the government, we know it has happened. In the near future, this Committee will bring a report on the same."},{"id":1592096,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592096/?format=json","text_counter":453,"type":"speech","speaker_name":"Kinangop, JP","speaker_title":"Hon. Kwenya Thuku","speaker":null,"content":"The next frontier we realised is the issue of securitisation. The government is now taking advance loans based on a promise to pay from future collections, especially the fuel levy. We realised that the same is anticipated for the Sports Fund. We want investors to give us money and spend on the promise of future collections. It may be a promising frontier, but if not checked, we may find ourselves in financial headwinds in the future. This is something that our Committee will look into, call relevant agencies, and get to the bottom of it."},{"id":1592097,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592097/?format=json","text_counter":454,"type":"speech","speaker_name":"Kinangop, JP","speaker_title":"Hon. Kwenya Thuku","speaker":null,"content":"In conclusion, many pensioners do not receive their pension on time. We appropriate money but Exchequer releases do not come in time. Many retired people cannot access their pay simply because the National Treasury has not released funds. I support the Report and request Members to support it so that we can move forward. Thank you, Hon. Deputy Speaker."},{"id":1592098,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592098/?format=json","text_counter":455,"type":"speech","speaker_name":"Kilifi North, UDA","speaker_title":"Hon. Owen Baya","speaker":null,"content":" I want to commend the Public Debt and Privatisation Committee led by Hon. Abdi Shurie for the good job they have done. I also want to commend each and every Member of the Committee. Debt is one of the issues that we grapple with as a country all the time. This government came to power with the promise of reducing the public debt. One of the very unpleasant things about the previous regime was debt. It borrowed money but there was nothing to show for it. There was a clarion call for change because Kenyans felt burdened by debt. One of the interesting things that we must note and take immediate action on is that we have over one trillion shillings of unutilised loans lying in our banks. Money was borrowed, commitment fee was paid, interest is accruing and yet the Ministries, Departments and Agencies (MDAs) are not utilising the money just because it was borrowed without a plan. That hurts the economy. The reason why we have a problem of cash flow is because debt payment is a first charge on the Consolidated Fund. When it is a first charge, you will accumulate all the money, take over 80 per cent and give it out yet you have money lying in a bank. The Hon. Shurie-led Committee should ensure that this money is disbursed and we get value for it. I do not want to use the word “foolhardy” but I think it is foolhardy. We borrow what we do not need and burden taxpayers with commitment fees. When we get to a level where Exchequer is not available, like in the case of the National Government Constituencies Development Fund (NG- The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."},{"id":1592099,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592099/?format=json","text_counter":456,"type":"speech","speaker_name":"Kilifi North, UDA","speaker_title":"Hon. Owen Baya","speaker":null,"content":"CDF) today, we do not get all the money. Probably, the money was swept and used to pay a debt of money that was lying in an account of an MDA that has been utilised. That is bad manners and we need to stop it. Secondly, 89 per cent of the Consolidated Fund Services is projected to … I do not want to go to that. However, I have interesting points here that I want to speak on. According to reports, the government has not effectively harnessed non debt financing options that includes grants. At times our bilateral and multilateral partners would rather give us grants than loans. However, the people who go out there to negotiate for money prefer loans. Probably, there is a negotiation fee for those loans. I may not know. Why can we not look at non debt financing that includes grants? We have a lot of money now in climate financing and concessional funding. We saw the Nairobi Expressway being built. We did not take a loan for the Nairobi Expressway but somehow it was built and motorists are paying to use it. Sometimes the people we entrust to go out there and source for funds prefer loans instead of non-loan financing options. Before the Government of Kenya commits to a loan, the question that must be asked is whether there was an alternative option. Could there have been a non-loan funding? Would there have been … Hon. Deputy Speaker, kindly, give me a little more time. I have a lot of things that I want to talk about. Add me four minutes. Important things must be said on this matter."},{"id":1592100,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592100/?format=json","text_counter":457,"type":"speech","speaker_name":"Hon. Deputy Speaker","speaker_title":"","speaker":null,"content":"Add him three extra minutes."},{"id":1592101,"url":"http://info.mzalendo.com/api/v0.1/hansard/entries/1592101/?format=json","text_counter":458,"type":"speech","speaker_name":"Kilifi North, UDA","speaker_title":"Hon. Owen Baya","speaker":null,"content":" Hon. Deputy Speaker, before Hon. John Mbadi became the Minister for Finance, we sat with him in this House. He used to sit here then he moved there. I used to seat somewhere there. Every time the finance minister came, we used to ask why he had not implemented the Single Treasury Account (STA) so that we consolidate all the funds. We are actually borrowing our own money and paying it back with interest. We have money in several bank accounts. When you go to the KCB and say you want an overdraft, they will give you your own money that is lying in their bank from another MDA. This government must ensure that we embrace the STA system. I do not know the experts here. I know that Hon. Makali Mulu is an expert on this, he might tell us why. Why is it very difficult to embrace STA? What are the interests? I now have to speak like the Member for Kilifi North. I am asking, why is it difficult to establish STA to consolidate idle government cash balances to improve liquidity management and lower the government borrowing costs? Why is it difficult? We know that is one of the panacea that we can use to consolidate funds and stop the problem of cash flow that we have. Hon. Deputy Speaker, another very important thing that I would like to speak about – apart from the single Treasury account – is that we have an opportunity to redeem this country. We are passing laws, for example, the Conflict of Interest Bill that probably some multilateral or bilateral lenders are pushing down our throats for funding. Because we are looking for money, we are told to do unpalatable things like passing a certain Bill, and do this and that. We rely on lenders and loans. Therefore, we must be pushed through a path that we do not like. If we consolidate all our funds, have one STA and be careful about the loans that we borrow, we may not have to go to multilateral lenders. President Mwai Kibaki did it and it can still be done today. We can run our economy, the sixth largest economy in Africa, on funds that are available without raising a single tax. If we do all these things, we can bring down all taxes and still manage our economy. I believe all is possible. The only problem is that we are careless in our borrowing and when we get the money, we are not ready to implement projects while the money is lying in our accounts. We eventually borrow money that has been loaned to us. We actually pay double. We pay the interest and commitment fees, and go back to the same bank to borrow money to pay salaries. We need to find a way out. What is wrong with having one single account for counties? You will find that one county government has a lot of money that it is not using while another The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."}]}