There is no longer any doubt that the stand-off between the Government and some international donors is likely to cause an economic crisis if quick steps are not taken to prevent it.

But what is not in doubt is that the looming financial crisis, is self-inflicted, on the part of the Government. Its lack of commitment on programmes agreed on last year with the International Monetary Fund and the World Bank cannot be excused.

If the current differences between the government and the donors lead to cancellation of aid, this will cause a huge gap in the country's budget, because the funds have already been budgeted for by the Treasury.

At a recent meeting with the Parliamentary Finance Committee, a visiting team of the IMF and World Bank were firm that the country risked losing the budget support because of its failure to fulfil the agreed economic reforms.

While recognising that some of the demands by the international donors may be an invasion to a sovereign State, it must also be noted that it is the government that made the pledges willingly and as such, it has no choice but to swallow the pill, however bitter.

However, as the dust from the emotional outbursts that greeted the donors' recent decision to withhold the aid, the reality is that this looming financial crisis must be countered before Kenyans find themselves in a situation similar to that in 1993, where inflation was at its highest.

The reality is that no amount of buck-passing and excuses from the Government, its leadership and the Attorney-General Amos Wako will stop the reality that these "difficult" economic reforms will have to be carried out because it is apparent we need the loans.

The World Bank, through its country Director Harold Wackman, has denied pushing the Government to implement "impossible policies."

Last week, President Moi made the first move towards this by instructing Attorney-General to start re-drafting the two contentious Bills at the heart of the controversy over the government's economic reform programme.

The contentious Bills to be re-drafted to make them consistent with the Constitution and the country's laws are the Anti-Corruption and Economic Crimes Bill and the Public Service (Code of Ethics) Bill.

The President also ordered provisional addition of legal experts and resources to the Legislative Drafting Departing in the AG's chambers to ensure a faster and effectiveness in drafting of Bills.

In the face of this looming economic crisis, the Finance committee has been consistent in demanding that Parliament be recalled from recess, to address the thorny issues.

The Committee says Parliament should reconvene to debate and pass the Economic Crimes Bill, which was published but has not been brought on the floor of the House.

However, MPs, particularly the Opposition, argue that the House should not accept the Bill as it is, accusing the government of having watered it down from the original version drafted by the Parliamentary Select Committee on Anti-Corruption, chaired by Webuye MP Musikari Kombo.

The Code of Ethics Bill was rejected and shelved for six months by the House last November, for being unconstitutional and the earliest it can resurface in the House is June.

The other burning issue the MPs feel they need to address is the outlawing of the Kenya Anti-Corruption Authority, which was declared illegal by a constitutional court.

However, assuming that Parliament is to be reconvened, debate on the Kaca issue is no longer certain considering that the matter has already been taken to court by Ford-Kenya party, appealing against the three-bench ruling on the Authority.

Kimilili MP Mukhisa Kituyi says taking the matter to court effectively blocks Parliament from rectifying the hurdles in the Kaca law, to ensure it is put back to its feet.

Dr Kituyi, also of Ford-Kenya, accuses the secretary-general Gitobu Imanyara of allegedly being used by Kanu to block Parliament from reviving the anti-corruption body, because of the sub judice rule.

However, Mr Imanyara the Imenti Central MP has dismissed the remarks as those of "a desperate person."

"This is a trick similar to that of the Goldenberg scandal aimed at stopping Parliament from moving ahead," Dr Kituyi said.

The Leader of the official Opposition, Mr Mwai Kibaki, is among the MPs who have called for Parliament to be reconvened to discuss a number of issues they consider as national crisis.

"The most critical of all is the action by the donors to withhold aid and loans. If this is effected, we shall go back to where we were at the beginning of last year when the Government borrowed heavily and impoverished its people," the Democratic Party leader said.

Mr Kibaki's observation was that Parliament would suggest ways of reviving the economy.

The Othaya MP said of the need to reconvene Parliament to look into ways of restoring the incapacitated Kaca. "We cannot afford to slacken. This is a matter that parliament can rectify," Mr Kibaki observed.

Kangema MP John Michuki says the matter must be treated with the urgency it deserves, given that the money expected from all the donors, an estimated $700 million has already been taken into account in the budget.

Says Mr Michuki: "Taking into account those factors, the continued withholding of the funds will cause a very serious deficit because this amounts represent around 25 per cent of the total annual budget. A deficit of that magnitude would completely disorganise the budget for this year.

Mr Michuki, a former Treasury Permanent Secretary, says if the money is not forthcoming, within this financial year, "it will be almost impossible" for the finance minister to prepare his Budget for the next Financial year "unless he is prepared to write off the donors, which would be disastrous."

Mr Michuki explains that his committee is concerned by the fact that only Sh335 billion is currently in circulation. Of this amount, he explains, the Government has already borrowed Sh173 billion in short term loans and mostly in Treasury Bills, while Sh116 billion represents bad debts.

"How can one borrow from that kind of situation? Even if the minister has any intention to borrow locally, to replace what will not be forth-coming from IMF/WB, there is no money left to be borrowed," he poses.

It is against this background that Mr Michuki and his committee propose that Parliament be recalled. However, the MP says this will largely depend on how fast the AG will be in redrafting the two contentious Bills, at the heart of the controversy over the Government's economic reform programmes.

But Runyenjes MP Njeru Kathangu says while there is need to urgently recall parliament to discuss the crises facing the nation, the move must not be tied to the demands by international donors.

"While there is a necessity that it be made a custom for Parliament to be on call all the time, we cannot ask the House to reconvene just because of the existence and beckoning of the IMF and World Bank," the Ford- Asili MP observes.

Mosop MP John Sambu says that following the AG's admission that he was pushed by donors into hurriedly drafting the Corruption Bill, Parliament must be recalled to address the issues and other crucial reforms demanded by the international Financial Institutions.

Says Mr Sambu: "It is now obvious that this money will not be released soon, throwing the country into a possible crisis sooner than later, with the Government attempting to borrow internally to finance its operations. The sad thing is that it is the tax-payer to bear the brunt."

The Kanu MP says the House should be reconvened as a matter of urgency, saying nothing should come in between Parliament and its wish to debate matters of national importance as a priority "because it is Supreme."

According to the Constitution, the powers to summon Parliament is vested in the President. However, when Parliament is in recess, it can only be called back by the House Speaker at the request of the Government.