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November 21, 2018

Pay local suppliers and plan prudently

Treasury. Photo/Monicah Mwangi
Treasury. Photo/Monicah Mwangi

On Thursday the Treasury will start public consultation for the 2019-20 Budget ( see P15).

The Treasury has done well to start planning so far in advance.

The MPs should also participate diligently. The MPs created the crisis over VAT on fuel because they did not spot it even though it was part of the Budget they received. We don't want that confusion next year.

Next year's budget must provide funds to clear the government's domestic debt arrears. Government is killing the private sector by not paying suppliers for years on end.

And that cash flow crunch is made worse by the government delaying transfers to the counties who then cannot pay their suppliers.

This cash squeeze is because government has taken on a mountain of foreign debt to develop Kenya's infrastructure. Why should foreign suppliers be paid before local companies?

Government should plan prudently for next year's budget. It should freeze new infrastructure projects and concentrate on paying off its domestic debt arrears, which are strangling the economy.

Quote of the day: "Everyone is crying out for peace... I need equal rights and justice."

Peter Tosh

The Jamaican reggae singer died on September 11, 1987.

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