- He added that before a Bill is passed, they go through it and discuss it for the interest of the people.
- His remarks came after Kenya planned to adopt debt swaps in the next three years to cushion the country from future economic uncertainties.
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Mosop MP Abraham Kirwa has defended the issue of debts in the country saying the government found empty coffers and borrowing money was the only solution.
Speaking on Thursday, he said that it is the core duty of the government to ensure that the interest of the people is well taken care of.
"The issue of debts in this country is a serious matter. For sure, when Kenya Kwanza took over this government, there were empty coffers and the country was struggling," the MP said.
"The government had to find a solution and it was to borrow money. It is our core duty as members of the ruling party, that is Kenya Kwanza to ensure that the interests of the government are taken care of as well as the interests of the people."
He added that before a Bill is passed, they go through it and discuss it for the interest of the people.
The MP spoke on Thursday during an interview with TV47.
His remarks came after Kenya planned to adopt debt swaps in the next three years to cushion the country from future economic uncertainties.
The plan will see the National Treasury engage in debt for food swap, debt for medicine swap and debt for nature swap as a debt management strategy.
A debt swap is an arrangement where a foreign debt owed by a developing country is transferred to a particular organisation, typically in return for the country's committing itself to specified set measures.
The National Treasury argued that the move was meant to avert scenarios like the ones witnessed ahead of the Eurobond repayment where investors adopted a wait-and-see attitude awaiting a clear plan on the repayment of the debt due in June 2024.
On Wednesday, Treasury Cabinet Secretary Njuguna Ndung’u told MPs that in the next 10 years, Kenya was supposed to pay not less than Sh8 trillion of the Eurobond debts and the treasury is pursuing debt swaps to ease the pressure from crucial repayment deadlines.
Treasury is in talks with the World Food Program about the plan to create a debt for food swap. Further engagements are with the World Bank over the process of developing a sustainability bond for liability management.
Ndung’u added that the Global Fund was working on a debt for medicine swap.
The plan spearheaded by the International Monetary Fund will see the treasury either raise revenue to the level proposed by the multilateral lender or reduce expenditure to the level agreed by both parties.
“They are going to train our staff on liability management. They are going to start now and say they are targeting the 2028 bonds and they work towards that, "Ndung'u said.
He said essentially Kenya will be receiving resources but this will be financing the future bonds to effectively reduce our exposure.