As we get excited on the aftermath effect of the Chinese premier’s visit and the Anglo Leasing stalemate, something serious happened under our noses! On Thursdsy last week, President Uhuru Kenyatta signed into law the Public Finance Management Amendment Bill 2014 where the National Assembly granted Treasury ABSOLUTE POWERS to borrow any loan or issue government property as security on behalf of the government in total contravention of Articles 114 and 201 of the Kenyan Constitution.
What really transpired in the August House?
Jubilee’s Priscilla Nyokabi explains ; There were no issues raised on constitutionality of the Bill. The main objective was to bring back to the PFM Act the external loans provisions at a time when the Govt needs to move on the sovereign bond to finance infrastructure projects and bring down interest rates.
Lawyer Antonio Bw’orwochi Moturi counters; Mheshimiwa, in the build up towards enacting the PFM Act, we campaigned against the External Loans & Credits Act (repealed). By this action, it means all the gains we made then have been watered down. World over Govts are embracing responsibke borrowing & lending principles. Our oen constitution advocates for public participation in financial matters. It is a major setback at a time when the govt’s appetite for foreign financing is on the increase& IMFs warning on our debt sustainability
Priscilla Nyokabi tries again; Hey Antonio Bw’orwochi Moturi I wish you raised the issues during debate on the Bill – In Budget Committee and on the floor the Bill was well supported by all coalitions. Public participation also means sending memos during consideration of bills… I have lots of confidence in our treasury thus had no difficulties supporting bill seeing there was need for law to allow external loans for the reasons I state… The President is committed to economic growth thus the measures adopted.