5 Nov 2019 in Senate:
Thank you, Mr. Speaker, Sir, for this opportunity to second this very important Motion. To start with, Senate is having a very unique opportunity to deal with a subject matter that we have grappled with in the last almost seven years through public debate about debt in this country.
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5 Nov 2019 in Senate:
This is a very challenging subject matter for me because on one hand while we have as many concerns about debt as possible, we also have a great responsibility as the House of the Senate. To start with - and I have said on the Floor of the House - as a member of the Task Force on Devolved Government, one of the struggles we had in the PFM Act was to provide an institution that will deal with matters debt particularly the question of the sharing of debts between the functions of county governments and the National Government.
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5 Nov 2019 in Senate:
It is important to explain this position because as we all know, the counties by law cannot borrow unless it is guaranteed by the national Government. This House has had the opportunity to work on various legislations to facilitate a process that enables county governments to borrow with the guarantee of the national Government. In the taskforce on Devolved Government then as a member, one of the things we proposed and we borrowed from Australia was the formation of Loans and Grants Council. In our thinking at that time, it was supposed to be an equivalent of an independent commission ...
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5 Nov 2019 in Senate:
Mr. Speaker, Sir, I say this with tremendous respect because I have had a discussion with my colleagues in this House---
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5 Nov 2019 in Senate:
I want them to listen, particularly Sen. Cheruiyot.
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5 Nov 2019 in Senate:
Mr. Speaker, Sir, I have had discussions with my colleagues in this House about loans and grants. Many of the people who have misgivings and a problem with the approval of these Regulations, their main problem is the management of debt. It is not the ceiling of the debt or the amount that is borrowed but the accountability of debt in the country. It is about how much is being borrowed into this country, who keeps the register, how is that money being distributed between the national and county Governments and also among the 47 counties.
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5 Nov 2019 in Senate:
If you listen to the colleagues in this House everybody is concerned about this debt that is being borrowed and is being paid by this country. I read in the newspapers
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5 Nov 2019 in Senate:
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5 Nov 2019 in Senate:
that every Kenyan owes a debt of Kshs130,000 or something of that sort. The question on everybody’s lips is: Is this debt is sustainable? Is it a debt that can be said to have been borrowed with intergenerational equity in place? When my children and grandchildren come to a level where they can pay debt, can they say out-rightly, that they are paying a debt that was borrowed by their father and grandfather but it was used to construct a road, a viable railway or a dam that can still be seen?
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5 Nov 2019 in Senate:
The question that the people of Elgeyo-Marakwet want an answer to is whether Kimwarer and Aror dams were built to the standard that still provides water for irrigation in Kerio Valley and electricity to the Republic. We cannot say that borrowing is just for the sake of it. In Mutula Kilonzo Jnr.’s county, Thwake Dam is being built at a cost of Kshs39 billion. This is money borrowed from the Chinese Government. The question we should be asking is: Is this distribution everywhere?
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