• Lenders will try to recover their debts through the acquisition of concrete assets such as mineral deposits and ports.
• Money borrowed should not be used to increase MPs' salaries or fund purchase of depreciating assets.
Kenya is heavily bound to external borrowing. The eye-opening insight by Rarieda MP Otiende Amollo that every Kenyan– including the one who is born today has a debt of Sh116,000 is mind-blowing.
As claimed by various MPs and backed up by a simple google search, currently, the national debt stands at approximately Sh6 trillion. Recently, MPs voted to increase the national debt cap to Sh9 trillion. The main source of income by the government is tax from people and corporates.
It might be the reason we are seeing the Kenya Revenue Authority on people’s and businesses’ necks every now and then. It’s important to note that, for KRA to raise the ceiling debt, it will take generations and generations given that they are struggling to fund a Sh3.2 trillion budget.
The lender will try to recover their debts through the acquisition of concrete assets such as mineral deposits and ports. I will consider it a bad debt if the money goes to fund increment of MPs salary, or to fund the purchase of depreciating assets such as vehicles to be used by the government officials, or billions of money stolen, then it’s another scandal.
As MPs claim, the borrowing should be used to retire loans and debts we have already incurred. Most importantly, the government needs to invest in the police so that reports of their attacks as reported in the Northeastern part of the country can reduce.
We need to invest in education. Schools need to be constructed. Many are being closed due to illegal structures while other children study under trees. These pupils need somewhere to go to, and that place is not home. We need to plan this country’s infrastructure to avoid the collapse of bridges as seen in some areas affected by floods.