The Parliamentary Budget and Appropriations Committee has advised Kenyans to invest in treasury bonds and bills for the country to grow its economy.
Through one of its members, Makali Mulu (Kitui Central MP), the committee said it will be having its eye on public debt to ensure that the country doesn’t borrow today at the expense of future generations.
“We want to encourage Kenyans that now that more will be borrowed domestically, it’s time to invest in instruments like treasury bonds and bills so that as we grow other people outside there, we grow our economy,” Mulu said.
Mulu spoke during the committee’s joint presser at a Nairobi hotel on Wednesday.
National Treasury Cabinet Secretary Njuguna Ndung’u appeared before the Kiaru MP Ndindi Nyoro led committee minutes before they addressed the press.
He said the best budget in every country even at a personal level was a purse budget ‘where you live within your limits’.
“As a country, we are not yet living within our limits. We want to say that as a budget committee, we have observed that we are moving towards living within our limits through the physical consolidation fund but we are not yet there,” Mulu said.
“This is the reason we are borrowing. This year the projection is that we will be borrowing Sh663 billion in the next financial year from either domestically or externally.”
Mulu said the current budget proposes to borrow more domestically and less externally.
He said they as a committee will be monitoring how well that will be done stating that the government will be competing for the same resources with the private sector that is supposed to be driving the economy if it borrows more domestically.
“As a committee, we want to make sure that if we borrow domestically, we will not crowd out the private sector,” Mulu said.
He said the committee will ensure there is intergenerational equity in matters of public debt.
Mulu said their work was to ensure that the country’s resources were shared with all regions of the country to better Kenyans’ lives.
He said the issue of pending bills was a major challenge that affects all Kenyans and cuts across both levels of government; national and county.
“These pending bills are harassing Kenyans. Kenyans have lost their property because they have been auctioned by banks. Some have died as a result of diseases associated with being auctioned,” Mulu said.
“As a budget committee, we assure Kenyans that we are taking this matter seriously and want to thank the treasury for confirming to us that as we move into the future, they will be coming up with strategies to ensure that for the next one year, all pending bills will be cleared and bills which will be incurred thereafter on annual basis, will become the first change in the next budget.
"In that case, we will be helping Kenyans to grow their businesses as well as ensuring that their welfare is improved."
Mulu said the committee will ensure that resources are shared equitably so that every part of the country benefits.
He said the Treasury and those concerned should ensure that Equalization Fund is implemented as provided for in the Constitution 2010.
“In that case, we will be helping those marginalized areas in this country to catch up with the rest of the country,” Mulu said.