Kenyans are in for a rough ride as the Jubilee government plans to be borrowing at least 104 million shillings per hour for the remainder of President Uhuru Kenyatta’s term in office, leaving Kenyans with a hole that will take generations to fill.
If this will come to pass, then the country will be borrowing at least 2.5 billion shillings per day to help in the implementation of the development projects within its portfolio.
President Uhuru Kenyatta is set to exit office in the next two years and if the plans will be affected, for the remaining two years, his government will have borrowed at least 1.87 trillion shillings.
The public debt is currently above 6.2 trillion shillings or 62 percent of the country’s gross domestic product. If the Jubilee government will borrow the anticipated 1.87 trillion shillings, the debt will balloon to at least 8 trillion shillings.
By the time President Uhuru Kenyatta will be leaving office, it is expected that his government would have borrowed at least 6.1 trillion shillings, the highest in history given that he inherited just 1.89 trillion shillings from President Mwai Kibaki.
The current government has been on a borrowing spree with most of the borrowed funds landing in the pockets of individuals in the form of corruption. It is estimated that Kenya loses at least 1 trillion shillings each year on corruption.
“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 as it looks to justify the borrowing.
The Kenya Revenue Authority (KRA) has missed its revenue collection target on several occasions even after increasing some taxes, leaving the government with no option but to borrow to survive.