Kenya’s Huge Appetite for debts May Collapse The Economy! Say Dr. Mulwa

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Devolution or decentralization of good initiatives of administration was one of the ideas presumed by the supper power in east Africa!

The idea came in amid cerebrations in the entire nation of Kenya taking its administrative units to its people just like the United States of America and other developed nations!it was a very noble idea and has changed the face of Kenya in developments but sustainance of what otherwise we call counties may be the worst nightmare alongside national government!

Devolution once a journey for the blessed is now a curse with the nation of Kenya financing counties with borrowed money as counties grapple with its debts in billions due to insufficient funding!

The first question:

just how far will the country finance its administrative units with borrowed money when it is being strangled by over six trillion kenyan shillings debt ?

Kenya by today can raise a maximum of one trillion shillings from all its sources of revenues ! Ever ahead for it to balance the preemptive expenditures in its budget standing in trillions ,Kenya must seek extra cash from international high interest financiers!but for how long will this continue ?

Second Question:

Can Kenya content with its only revenues which at least stands at one trillion Kenya shillings and stop its addictive borrowing?

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Accordingly Kenya is already an addicted nation in borrowing and it will be impossible to
adjust its expenditures to its receipts!so debts may finally overburden and collapse the economy irredeemably!

So what will happen?

The financing entities starting with IMF and international agencies and other persistent lenders like China may not respond positively to Kenyan continued costly behaviour of borrowing and accruing debts in trillions of shillings ! And for sure this will finally bring Kenyan economy to its knees!

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So what is in unforeseeable as of today in Kenya?

There is a very high possibility of financial stalemate in this country with a very high appetite for borrowed cash for its operations !The counties as they are today may not be sustained with high possibility of a recall or retreat from devolution to central administration if things don’t very fast change as they are today!

The nation does no have any valid and adequate formula of clearing and redeeming its debts and so continued borrowing may be risky as lenders come in to manage some of the Kenya’s prime assets to recover their investments sending our nation to second economic colonization !

So what should Kenya do as a nation in the face of this reality ?

Kenya should Very fast refrain from high appetite for loans and develop a project prioritization Formulae to reduce expensive journey of very high interest loans and see the nation cripple in heavy poverty with five rich and ninety poor in the hands of merciless lenders not different from informal Shylocks!

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Kenya should continue providing services and products and implementing policies which can only be sustained financially by its revenues without reliance from external borrowing!

Again Increase its revenues by negotiating with international employers in the many nations of the globe for educated youth for jobs and export of talents and increase tax for proceeds from the Diaspora ! This will unlock the unemployment as well as increase national revenues and ultimately reduce appetite for borrowing!

I mean open avenues for increasing revenues without strangling Kenyans with basic tax increments and open accounts for specific tax streams to be directed for debt redemption!

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