Nipate
Forum => Kenya Discussion => Topic started by: sema on April 28, 2023, 03:11:22 AM
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Wanjigi: Kenya is in a debt-trap and nothing in the medium term or short-term can save Kenya from a debt default. Nothing. Nothing. Nothing.
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There are many things gov can do before defaulting
1) Raise revenues
2) Borrow more
3) Sell gov assets
4) Cut budget
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You clearly didn't listen to the interview.
Kibaki left a debt of 2 trillion. Parliament approved 2.3 trillion. Total?= 4.3 trillion, but an additional 4 trillion was borrowed "outside" of the law and nobody knows by who or what that additional money was used for.
So, the total budget is 8.6 trillion. 5.6 trillion has already been paid out, but nobody knows to who and the budget still says 8.6 trillion despite the 5.6 trillion being "paid" out. Who was it paid out to?
Wanjigi argues that this 5.6 trillion should be declared odious debt (debt borrowed corruptly and that only benefited a few corrupt people) and not the country or the public.
He says Kenya should follow the Mozambican example (i.e. what mozambique did with the tuna bonds) -
go to court;
**declare this 5.6 trillion as odious debt and don't pay it.
**However, they will be consequences for that -- interest rates will go up and it's still basically a default; Mozambique is paying a price for doing this but they won't pay the debt.
**Look for the people that stole that 5.6. trillion and prosecute and jail them (the mozambican finance minister was hiding in south africa and was prosecuted for this corruption)
**We have to see what Ndii is saying about this issue. He has gone quiet on twitter.
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They were spending like drunks...
Everything will severely be affected whatever Ruto decided to do. I hope its a mixture of spending and tax restructuring.
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Kenya will not default as that would be nuclear option.
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Govt expansion in crunch times.
Documents tabled in the House last evening show that Kenya Kwanza’s administration’s first budget will expand by Sh215.03 billion compared with the current one prepared by its predecessor.
Targeting farmers.
Taxes on earnings by workers and farmers are projected to increase to nearly Sh1.2 trillion from an estimated Sh1 trillion for the current year, Value Added Tax from Sh587.7 billion to Sh703.3 billion, excise duty from Sh297.2 billion to Sh352.7 billion, while import duties are seen growing to Sh173.3 billion from Sh145.9 billion.
https://www.businessdailyafrica.com/bd/economy/inside-ruto-s-first-sh3-6-trillion-budget-taxation-plans--4215618