President Ruto at 2: From ‘empty coffers’ to skyrocketing public debt
Within two years into his term in office,
the economy has proven the heaviest burden for President William Ruto.
The fiscal deficit widened from 6.3% of GDP
in 2022 to 7%; in 2023, as revenues underperformed, and interest costs rose; public
debt expanded from 66.7% of GDP in 2022 to 70.2% in 2023, driven by increased
loans to finance the primary deficit and by exchange rate depreciation.
However, Kenya’s economy grew 5.2% in 2023,
up from 4.8% in 2022.
In his economic rebound plan, President
Ruto promised to revive the Kenyan economy, improve food production and provide
quality infrastructure, education and healthcare services.
Public debt is also on the rise; in December
2022, Kenya's public debt stood at ksh9.1 trillion, a 5 per cent increase from
the Ksh8.7 trillion reported by the Central Bank of Kenya when the Ruto administration
took over in September 2022.
The total public debt as of the end of January
2024 was Ksh.11.2 trillion, representing 69.7 per cent of GDP.
Recently, Ruto has outlined plans to limit
borrowing, increase the government's revenue, and cut spending as a mitigation
measure but all these found a stubborn appetite in government.
Two years after assuming office, Kenya's
debt has been described as sustainable with a high risk of debt distress
according to the IMF.
President Ruto's administration has found
itself at loggerheads with the public with mostly its tax policies met with
resistance and protests.
The 2023 Finance Bill was opposed by the Azimio
La Umoja coalition, with Raila Odinga leading his troops in street battles
seeking to have the bill dropped. A defiant Ruto signed it into law.
Then came the Finance Bill 2024 which
triggered nationwide protests led by youthful protestors.
The finance bill that was to finance the
2024-25 financial year budget, was taken through a public participation process
with nearly all stakeholders opposing the new taxes on various products.
Despite the public rejection, MPs passed
the bill worsening an already bad situation on the streets.
The climax of the protests was the storming of parliament by the Gen-Z protestors who wanted to evict MPs from the chambers. Sadly, the lawmakers had just made the final vote a few minutes before protestors broke into Parliament.
Want to send us a story? SMS to 25170 or WhatsApp 0743570000 or Submit on Citizen Digital or email wananchi@royalmedia.co.ke
Comments
No comments yet.
Leave a Comment