Nigeria’s Senate dealt President Muhammadu Buhari an unexpected blow on Tuesday by rejecting his plan to borrow $30 billion abroad for infrastructure projects and budget support until 2018.
The decision makes it more difficult for Buhari to build new roads and invest in outdated power grids with a view to boosting agriculture and other non-oil industries, and reducing the economy’s dependence on dwindling crude revenues.
President Buhari had explained in the letter that external borrowing plan would be targeted at projects which cut across all sectors with special emphasis on infrastructure, Agriculture, Health, Education , Water supply , Growth and employment generation , poverty reduction through social safety net programmes and governance and financial management reforms etc.
[SIZE=5]So I pose the question again, does Kenya have a policy on external borrowing? And does the president require parliament’s approval to borrow funds? [/SIZE]
YES, there is a set ceiling that government cannot borrow above, this ceiling is set by parliament. Parliament raised the foreign debt ceiling from 1.2tr to 2.5tri in 2014
Kenya Parliament through the PAC (Accounts) and PIC (Investments) are also involved in borrowing.
Through the Kenya Budget the external borrowing is decided(this days the process has no flair, siku zangu Budget Day was a National Holiday when my Uncles were allowed to throw stones at the Police at University Way). The CS reads and the Parliament accepts the fiscal policy that GoK has planned.
Kenya Borrowing:
China decides,
kamwana and ManRuto decide how much they need,
Governor wa CBK (and the Board) wanasema leta pesa
maCockroach na maPanya wanafichwa macho
Mabillion-heir (kama Bibi wa Muthama, Sister wa Kamwana) wanna pata ma Contracts
Mbirioneas wana fanya kazi na Mabillion-heir
Mbirioneas wanalipia Peasant faxe
Seriously these guys are Jokers. Nigeria has a perennial problem as far as its outdated power grid, with individuals and businesses have to use generators and costly fuel to ensure power availability. I’m sure there’s a hidden hand in the senates veto (you know, like the Senators looking for a gravy train to hop on).
Ingawaje hio pesa ni nyingi their economy is equally big.
Hawakutaka kusumbuliwa…HAWAKUISOMA!
…The Senate did not even discuss it as it was killed immediately it was mentioned as an executive communication by Senate Leader, Senator Ali Ndume “that the Senate do consider the request of the President Commander in Chief on the 2016 – 2018 External Borrowing Rolling Plan.” Soon after Ndume’s remarks, Senate President Bukola Saraki now puts it to Vote and the Nays had it. Senator Saraki who was surprised and trying to give President Buhari a soft landing, decided to put it into vote the second time and the Nays still had it and he ruled.
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