The interest we pay on our public debt has risen from KShs 121 billion as at June 2013 to estimated KShs 366 billion as at June 2019. Since interest on debt is a recurrent expenditure it cannot be financed by borrowing. It has to be paid using revenues.
Our current revenues are around KShs 1.5 trillion. It means that once you take over KShs 400 billion to pay interest you will be left with an amount which cannot even sustain national government recurrent expenditure.
Clearly, we have maxed out our borrowing capacity. It is time to tighten belts.
Parliament needs to take control of this before it gets out of hand. To begin with the MPs should not allow any extra borrowing from the current financial year going forward.
Unfortunately, in the current financial year the government has already borrowed KShs 59 billion. This is not sustainable.
Nataka hii country ipate recession. Heck! Scratch that, ipate depression kama ile ya 1930s USA. Lessons will be learnt.
The situation is similar to telling a dude not to go to the bar with the salary having not settled any bill. Itapita kwa sikio moja itokee lingine. Wacha ile siku mtu atakunywa salo afungiwe keja atajua hajui…
Kenya ifungiwe keja(metaphorically speaking). Hii nchi imelewa salo yote!
Somebody should have asked an economist his opinion before publishing such a law. And the debt wouldnt have risen this high if the government wasn’t violating that law.