Public Debt and Privatization Committee Meets Different Directorates From The Nation Treasury
The Public Debt and Privatization Committee chaired by Hon. Abdi Shurie (Balambala), has today met with different Directorates from the National Treasury.
The Public Private Partnerships Directorate appeared before the committee to discuss the key Public Private Partnership (PPP) projects for the Financial Year 2023/24. The Director-General (DG) Mr. Christopher Kirigua informed the committee that the Government has identified key priority sectors including water, housing, transport, infrastructure, trade and industry, to synergize with the private sector through the PPP framework.
The DG noted that, to achieve this, projects will be identified and screened for commercial viability as PPPs, before being considered for implementation within the National Budget. In this regard, the PPP Directorate expects to mobilize an estimated Kshs. 50 billion within FY 2023/24, to serve as capital for these projects.
The Credit Guarantee Scheme (CGS) for Micro, Small and Medium Enterprises (MSMEs) also presented their Performance Report for Financial Year 2022/23, noting that from December 2020 to 31st May 2023, they disbursed a cumulative value of approximately Kshs. 5.64 billion to 3,781 MSMEs across 46 Counties and 12 sectors of economy as reported by the banks through the Central Bank of Kenya.
Out of this, 1,267 facilities have been fully repaid, representing credit amounting to Kshs. 1.48 billion and a guaranteed commitment of Kshs. 371.2 million has been released for additional MSMEs.
The distribution of the CGS facilities included 2,194 small enterprises, 1,029 micro enterprises and 558 medium enterprises. Further, the enterprises owned by women, youth and persons with disabilities received 20 percent of the total number of guaranteed facilities.
The committee was further notified that during FY 2022/23, approximately Kshs. 1.742 billion was disbursed to 1,291 MSMEs under the CGS, while the outstanding credit guarantees was Kshs. 1.1 billion, as at 30th June 2023.
The Pensions Department led by Mr. Michael Kagika (EBS), the Secretary/Director of Pensions, also briefed the committee on the pension payments under the Consolidated Fund Services between the FY 2017/18 and FY 2023/24, noting that there was a progressive increase in pension related expenditure in the last 5 years, except for FY 2018/19 and 2022/23, due to liquidity constraints on disbursement of funds from the Consolidated Fund. There was however a significant increase in expenditure in FY 2021/22, due to the implementation of the Public Service Superannuation Scheme (PSSS).
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