Seek Permission From the National Assembly For Any Loan Approval, to Avoid Unabated Borrowing.
Hon Alexander K Kosgey has written to parliament a proposal to have the government seek permission from the National assembly for any loan approval, to avoid unabated borrowing.
“I write to propose an amendment to the Public Finance Management Act that will require the government to seek approval from the National Assembly prior to taking any future loan.” Read the letter addressed to the national assembly speaker, Justin Muturi.
Further, Hon. Kosgey wants all loan agreements and associated documents to be tabled before the house and be made available for public scrutiny for transparency of the executive.
In 2018, the youthful member of parliament proposed a legislation for debt ceiling to be fixed figures rather than percentages that were being used earlier.
“As you may recall, by my letter, dated 28th August 2018, I had been the first to propose legislation for a debt ceiling stated in figures rather than as a percentage of GDP. I felt that this would greatly assist the oversight process.” Said Kosgey.
The ceiling proposed by the then first-time M.P was sh. 6 Trillion but the ministry of finance and National Treasury insisted on a higher figure of sh. 9 Trillion which was eventually accepted and became law hence Kenya having a clear debt ceiling anchored in law.
Since then Kenyan debt has been growing rapidly and currently stands at sh. 7.7 Trillion, It is becoming increasingly likely that the government will reach the sh. 9 Trillion ceiling mark before the end of the current financial year.
The member of parliament for the Emgwen constituency has noted the likelihood that, the treasury will request an amendment to borrow more after surpassing the limit.
“They Will then request to increase the ceiling,” he explained.
“While it is tempting to oppose any such increase in the hope that it will curtail government’s borrowing, the reality is that such a move would cause our economy more harm than good, I feel that we can at least put in place further legislative measures to deal with our growing debt problem,” emphasized the M.P.