A report by the National Assembly Public Debt and Privatization Committee has revealed that over Ksh180 billion in loans taken from international lenders were yet to be disbursed.
According to the report tabled before the floor of the House on Thursday, Ksh213.24 billion was borrowed between May 2022 to April 2023.
However, the MPs were concerned by the fact that only Ksh24.2 billion was disbursed within that period, affecting the timely repayment of the credit.
On the other hand, it was detailed that some Ministries and State departments were not withdrawing loans meant for particular projects.
Kenya Association of Manufacturers (KAM) at a meeting with representatives from the International Monetary Fund (IMF) on November 7, 2023.
“During the review of the loan reports, it was noted that only three loans totalling Kshs24.2 billion had been partially disbursed, indicating a disbursement rate of less than 11 per cent, which was utilised in general budget support,” Abdi Shurie, the Committee Chairperson and Balambala MP informed the August House
The MPs noted that the loopholes were putting the country in a precarious situation, given that some of the loans would mature before being properly utilised.
Consequently, the MPs recommended that the Treasury submits timely reports to allow Parliament to monitor the disbursements.
Treasury CS Njuguna Ndungu was also advised to draft and explain strategies he would employ to ensure that the loans are disbursed on time.
“The report also suggests that within 90 days, the National Treasury should fully digitise the loan approval monitoring system to enhance reporting, transparency and accountability,” the chair reported.
Kikuyu MP Kimani Ichung’wah, who also acts as the National Assembly Majority leader, also supported the new push by the lawmakers noting that it would help in drafting policies for future loans.
“These reports will help to inform the House of the level of debt in the country and to gauge whether, in the subsequent financial year, the country will enter into more debt than it was in the particular year of reporting.
“The timely submission and consumption of reports by the House will help to inform ourselves and the Country where we are in terms of our debt levels so that we don’t find ourselves in a position where we continuously continue getting into debt problems without knowledge because we don’t have timely information”, the Majority Party Leader added and urged the National Treasury to submits its reports every quarter.
Kikuyu MP Kimani Ichung’wah (left) and Deputy President Rigathi Gachagua (right) at Alliance High School on Sunday July 30,2023