MCAs reject Muriithi’s Sh1.4b bond
Laikipia Members of the County Assembly (MCAs) yesterday unanimously rejected Governor Ndiritu Muriithi’s Bill that seeks to borrow Sh1.4 billion infrastructure bond.
Speaking at Assembly premises, Majority Leader Joseph Kiguru said the Ward Reps questioned how the county would repay the facility.
“As Assembly members, we have discussed the infrastructure bond. The bond is a debt and when you decide to take a loan, you should have a clear plan on how to offset it,” Kiguru said.
The Igwamiti Ward MCA added that MCAs felt Muriithi should have prioritised reviving leather industries and boosting small business enterprises.
“We know the government does not operate business; it is a service provider.
When we construct roads by use of loans it will not be possible to repay. Loans should be used to create business opportunities for our youth, for instance, leather factories,” he noted.
County was set to float the bond in the stock market to finance its infrastructure projects for 2021/22 financial year when approved by the National Treasury, National Assembly, Commission on Revenue Allocation (CRA) and Capital Markets Authority and Intergovernmental Budget and Economic Council.
Early last month, Muriithi, speaking during a Webinar meeting on Laikipia Infrastructure Bond-expected economic impact, said the repayment of the bond was to be facilitated from the projects, which were to be funded.
“The payment of the bond is expected from our projects cash flow 100 per cent. We have put immense effort to assess this project,” Muriithi had said.
Bond was expected to fund grading of roads in urban areas, installing street lighting, constructing dams, and beautification of towns under the Smart Town Initiative if it gets requisite regulatory approval from the National Treasury, CRA, and Capital Markets Authority. – KNA
