Raila vows to curb Kenya's rising debt if elected President
ODM leader Raila
Odinga has pledged to address concerns surrounding Kenya’s current debt
portfolio, which he says is negatively affecting economic growth, should he
emerge victorious at the August polls.
According to
Odinga, who was speaking at Chatham House in London on Wednesday, Kenya’s burgeoning debt has aggravated
poverty and stalled local economic development as such the issue should be
addressed quickly to prevent the country from falling into a fiscal abyss.
“Kenya is now
approaching US $100 billion (Ksh.10 trillion) in public debt. This puts Kenya in the
group of “the most debt-stressed” middle and lower-income developing countries
now being forced into IMF credit and IMF supervised austerity programs,” Odinga
said in his address.
Such austerity
programs, Odinga added are more often than not implemented with the sole
interest of satisfying debt repayment at the expense of the livelihoods of
Kenyans.
“We have no choice
in the matter. We will have to seek the indulgence and cooperation of our
development partners to renegotiate our debt. I will also audit our debt
to establish its actual size,” said the former premier.
Odinga partly
attributed the country’s debt to corruption and kleptocracy, pointing
out that his government will
strive to ensure that Kenya does not default on debt repayment.
“Gross Public Debt
increased from 44.4% of the Gross Domestic Product (GDP) in 2010 to 69% of the
GDP at the end of 2020, reflecting high deficits, explained by the financing of
infrastructure projects whose costs are quite often inflated due to
bureaucratic corruption,” he said.
“We will mount a serious
war on corruption. Corruption as it manifests today is a global phenomenon. In
future, we will strive to borrow at a favorable interest rate, negotiate
repayment periods that are not stressful, and invest in enterprises that give
good social and economic returns.”
He likewise stated
that his government will augment devolution budget for counties to 35 percent
up from 15 percent underscoring that “a central government does best when it
governs least at the local level.”
The former premier
also reiterated the importance of multilateralism citing that the COVID-19
pandemic and its impact on the global economy had highlighted the significance
of having working relations among different states.
“We saw the need
for multilateralism when COVID struck. The real scandal about the global
response to Covid-19 has been vaccine inequity, or what has been called vaccine
apartheid. Because of the international outcry, these inequities are now being
addressed,” he said.
“However, we need a
more structural solution to vaccine inequity to avoid the recurrence of what
has happened with Covid.”
Odinga similarly
promised to increase agricultural productivity in the country by providing
inputs to small holders in addition to farm subsidies to farmers to enable them
produce for consumption and export.
The ODM leader
likewise stated that he will prioritize an export-minded industrialization
policy that will allow the private sector to drive the export agenda.
As the African
Union High Representative, Odinga likewise highlighted the importance of
investing in infrastructure development in the region underscoring that such
projects will promote trade, development and prosperity across the continent.
In this regard, the
former premier lauded the East African Community for expanding its membership
in order to augment bilateral relations among member states noting that his
government will continue in the same direction.
Odinga also chimed
in on the ongoing conflict between Russia and Ukraine citing that Kenya stands
to lose approximately Ksh. 10 billion worth of exports to Russia owing to
sanctions imposed on the Vladimir Putin-led nation by the west.
He consequently
urged the two nations to find an amicable solution that will address the
ongoing conflict in Eastern Europe.
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