It is obvious that Kenya thrives on the wheels of debts. It seems it is in our government’s DNA to borrow o survive. Currently, the country cannot carry out any meaningful project without a grant or taking a loan from “our international friends” such as China.
As the country’s public debt continues to balloon, the government is planning to borrow an average of 2.5 billion shillings per day (or 104 million shillings per hour) for the next two years in order to meet its “developmental agenda.”
If the plans being put in place by the National Treasury will be actualized, for the remaining two years, the government of President Uhuru Kenyatta will borrow at least 1.87 trillion shillings before his term comes to an end “according to the current constitution.”
The government has been on a borrowing spree that has including flooding of several Eurobonds to meet its budgetary expectations. If the move to borrow 1.87 trillion shillings will be realized, the public debt will be at least 8 trillion shillings by the time President Uhuru Kenyatta will be leaving office.
By borrowing an additional 1.87 trillion shillings, it will also mean that in the 10 years of being in power, the Jubilee government will have borrowed at least 6.1 trillion shillings. When they came to power, President Uhuru Kenyatta and his deputy William Ruto inherited a debt of 1.89 trillion shillings.
“The impact of Covid-19 on the economy is expected to adversely affect revenue generation. Given the current and projected expenditure demands, it is estimated that the Kenyan debt stock could reach Sh9.2 trillion in FY 2022/23,” said the National Treasury.
The government was banking on the Kenya Revenue Authority (KRA) to increase and widen its revenue collection net but has always been failing to hit its own target. This has always left the government with an open window to borrow in order to supplement the deficits in budgets.