By Amina Faki
We have the tendency of thinking that what our leaders/esteemed politicians say in their speeches is always correct.
We assume that they know best and what they say should always go for us and we blindly fall for it whether they are speaking the truth or not.
During the Fourth State of Nation speech, the President Mr. Uhuru Kenyatta addressed the nation on all his achievements since 2013. He mentioned that, to quote his exact words “our debt is at about 50 percent of our gross domestic product”. He showed his concerns that the public debt might be too high.
According to Africa Check, the president’s claims on the percentage of the public debt were understated. It’s finding shows that the preliminary International monetary Fund findings put Kenya’s public debt at 52.1 percent of its gross domestic product (GDP) in the 2015/2016 financial year which ended on 30 June 2016. This is put in comparison to the debt ratio of 48.7 percent in the financial year 2014/2015.
Speaking to Africa Check, Anzetse We’re a development economist said that the rising debt may not be suitable in the long run. The continued by saying that this is due to the ballooning productive spending, citing recurrent expenditure such as salaries.
She added that the government has to focus on getting the balance between recurrent and development expenditure right.
According to the World Bank study in 2010 shows that for developing economies, a debt to GDP ratio of 64% would hurt the economic growth.
Kenya’s rising public debt might just put the country in a tight spot. The government should take cautious measures in ensuring that the country’s public debt is contained before it hurts the general economy.
Ignorance might just cost us our lives, let’s take a new turn and be critical in every bit and situation that our leaders and politicians state and create. This could just be a turning point to a better future for Kenya’s next generation.