Kenya Kwanza  says Handshake is to blame for Kenya’s swelling international debt, high cost of living

Kenya Kwanza says Handshake is to blame for Kenya’s swelling international debt, high cost of living

BY NAMULONGO PETER,NAIROBI,21ST FEB,2022-The Kenya Kwanza Alliance now says  Kenya’s debt has doubled since the famous 2018 handshake, rising from Ksh. 4.5 trillion to Ksh. 11.7 trillion.
 
ANC leader Musalia Mudavadi quoted the Kenyan Treasury as saying that the public debt had grown six-fold since 2013, to Ksh. 11.7 trillion (8.2 trillion in direct public debt and 3.5 trillion in guaranteed commitments) as of February 2022, during a press conference on Monday.
 
The alliance, which is touring Meru, has urged Treasury Cabinet Secretary Ukur Yatani not to approve any new loans that would add to the country’s already mounting debt.
 
“Was the handshake a license to burdening Kenyans with punitive public debt, punitive taxation, punitive food prices and a high cost of living?” Mudavadi posed. 
 
According to Mudavadi, loan commitments have exceeded the set debt ceiling of Ksh.9 trillion approved by parliament, further crippling the country’s budgetary situation.
 
“The CS for the National Treasury should not sign any new loans including floating sovereign bonds during this transition. The National Assembly and the Senate should reduce the budget ceiling to ensure a fiscal deficit that does not exceed Kshs. 400billion and check on the growing public debt,” he stated.
 
“The Cabinet Secretary for the National Treasury exceeded the set debt ceiling without seeking new approval from Parliament in total violation of the Constitution and the PFM Act, 2012,” he added.
 
Similarly, they urged parliament to reject CS Yatani’s proposal, which he claims will push the country’s budget deficit to Ksh.12 trillion.
 
“The National Assembly and the Senate must avoid any further strangulation of Kenyans with additional debt by refusing any request for approval of a new debt ceiling,” he posed. 
 
“We are aware, the CS for the National Treasury has prepared for submission to Parliament, a new debt ceiling of approximately over Kshs.12 trillion.”
 
At the same time, Kenya Kwanza addressed the equitable share of Kshs. 495 billion to counties, rallying behind allied MPs’ proposal to increase the equitable share to counties to Kshs. 495 billion in the financial year 2022/2023 under Section 25 (7) of the PFM Act, 2012.
According to Kenya Kwanza, the country does not require a constitutional amendment to give more money to counties.
“The law allows Parliament to pass a resolution to adopt the BPS with or without amendments. This amendment deserves the goodwill and unwavering support of all Members of the National Assembly,”  the alliance said.
 
The alliance has also proposed an amendment to the budget for the financial year 2022/2023 to provide an additional Ksh. 2 billion for drought mitigation, including a livestock-offtake program.
 
Other propositions include; an amendment of the BPS 2022 to provide for an additional Kshs. 5billion for fertilizer subsidy program to bring the fertilizer prices down to about Ksh. 2,500. 
 
On the issue of corruption, Kenya Kwanza has proposed amendments to provide an additional Ksh. 12 billion in FY 2022/2023 for the operationalization of the Judiciary Fund in accordance with the Constitution, in order to provide the Judiciary with financial independence, autonomy, and financial muscle to succeed in the fight against corruption.

 

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