Emgwen MP Alex Kosgey now claims Kenya is broke and at the brink of being auctioned by creditors.
In a statement to the media, the lawmaker said the country is cash crunch and warned that with the continued borrowing the county was likely to experience a crisis similar to the Greek government debt.
According to the legislator, every new born in Kenya owes KSh 120,000 in debt.
Read the Full Statement below:
Is Kenya walking a tight rope and gambling the future of its citizens in the heavy debt commitments? What are the assumptions about the country’s rosy economic outlooks?
In 1987, Kenya’s total debt stood at $5.9 billion representing 77% of its gross national product (GNP). In 2008 the public debt stood at Sh867 billion.
Fast forward to 2015, according to National Treasury data dated March 2015, the government had borrowed Sh874 billion between 2013 and 2015, overtaking former President Kibaki’s regime, which borrowed Sh738 billion in the entire period of the Grand Coalition Government.
In August 2008, with a population of 36 million, each Kenyan bore a debt tag of Sh24, 083 of public debt. In July 2014 with a population of at least 40 million people each person bore a debt tag of Sh75, 000. Kenya is currently heralded by debt, foreign as well as domestic. The country is currently in a cash crunch, and could be headed the Greek way.
The truth of the matter is, the Kenya is broke and is on the brink of being auctioned by creditors who are demanding their money back. This is the naked truth.
It is worrying that the national debt stands at 57% of the Growth Domestic Product and it is sad that every new born baby owes the government KSh 120,000.
As at July 2018, 7 shillings out of every 10 shillings collected by KRA was used to repay Kenya’s national debts and the amount is still rising.
Fellow Kenyan,I am working on a bill that sets to put a cap on national debt. It will also require Treasury to submit to Parliament the proposed repayment plan.
African governments need to watch their borrowing habits. They are mortgaging the future of future generations. Who will pay for this?
And as Robert Heinlein said in his book The Moon is a Harsh Mistress, “There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.” We demand that the administration rescinds the decision on external debts.
Thank you and God Bless Kenya.
Hon. Alex Kosgei
27th November 2018