How can Kenya Cut Down on her Growing Debt

By Juma / Published June 3, 2016 | 8:26 am



Debt

Kenya’s debt is growing with each passing day and the International Monetary Fund has already raised a red flag.

Early this year, it emerged that every Kenyan, both young and old owed the world in terms of debt 75000 shillings each.
In one of the weekly reports by Cytonn, Kenya is already ahead of her borrowing and is still borrowing.
As things are currently, if the country cannot find ways to cut down on her debts, then even the future generations will be indebted to the world.
How can the country cut down on her debt and what are some of the mechanisms that should be put in place?

Corruption

This is one of the cancers of the economy of Kenya. Kenya loses more that 500 billion shillings to corruption annually.
Corruption is rampant in Kenya and the government of the day has been accused to be doing little or nothing at all to curb the vice. President Uhuru Kenyatta, at one point declared corruption as a threat to national security.
If the government can walk the talk and reduce the rate of corruption in Kenya even by 20 percent, the economy will move towards the right direction. The case about the Eurobond has never seen the light of the day and Kenyans will never know the truth about how the billions were used and spent.
Cases of people evading to pay tax are on the rise in the country. Most unscrupulous businessmen are colluding with some rogue Kenya Revenue and Authority officials to deny the nation what is rightfully hers. On more than three occasions, KRA has failed to hit its target on revenue collection. If revenue collection will be maximized, the government will not have to borrow from other countries.

Infrastructure

Much of what the government of Kenya borrows is to either build or enhance the infrastructure level in the country. If the government can build long lasting infrastructure such as roads, there will be no need of repairing them from time to time. A lot of that money can then be channeled to the enhancing of other sectors of the economy.
Most roads that are constructed in the country often take just a few years before pealing off making the billions pumped into them going down the drain.

Poverty

More than 50 percent of all Kenyans live below the global poverty line. A nation that has more people in the lower class than in the middle class will.always borrow to sustain its economy and the economy of its people.
The government should strive to build and sustain the middle class which is a sustainer of the economy of any given country.




About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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