• AG advised that the House that the desired amendments must be approved by both Houses of Parliament.
• Delegated Legislation and Finance and Budget committees advised to seek opinion of financial experts and advise the House accordingly.
The question of whether the National Treasury will succeed in its bid to increase the cap for state borrowing to Sh9 trillion now lies with the Senate.
The Treasury has requested the House to consider the ministry and approve its notice to consider and approve its notice to increase the debt ceiling.
The notice, which seeks to amend the Public Finance Management (National Government Amendment) Regulations, 2015 to increase the ceiling was approved by the National Assembly last week.
“The purpose of this letter is to formally request the Senate to consider and approve the amendment to the PFM,” the letter by National Treasury Principal Administrative Treasury F.K Musyimi reads.
CS Ukur Yatani requested the Senate after advice by Attorney General Paul Kariuki that the House that the desired amendments must be approved by both Houses of Parliament.
“The Attorney General advised the National Treasury that the amendment of the regulations requires public participation, consultation with Intergovernmental and Economic Budget Council (IBEC) and approval by both houses,” the letter reads.
Deputy Speaker Kithure Kindiki relayed the Treasury's request to the House on Wednesday and directed the House committees on Delegated Legislation and Finance and Budget to inquire and advise the Senate appropriately.
The committee will receive views of financial experts and the general public and table a report in 10 days with recommendations on whether the House should approve the notice to change the law.
Senate Majority leader Kipchumba Murkomen urged the two committees to seek the opinion of financial experts and advise the House accordingly.
“This matter is of immense interest to this country because it touches on public debt and its management. The committees will invite experts to separate facts and myths and propaganda and truths,” he said.
Bungoma Senator Moses Wetangula said the House to be cautious when handling the emotive debt issue.
“This issue has come as a tremendous relief to me. Former President Mwai Kibaki resisted the temptation to recklessly drive the country into heavy debts. He left the country in sound mind," he said.
“The burden we are being asked to approve is a trap that will lead this country to what we saw Greece go through. Kenya has no member of the European Union to come and rescue it if it sinks in debt."
If the Senate approves the change, Treasury will have leeway to borrow more in line with its target of increasing public debt to Sh9.1 trillion in the year starting July 2023 from Sh5.7 trillion in June.
Edited by R.Wamochie