Ruto forms taskforce for auditing Kenya’s public debt

Nairobi, KENYA: PRESIDENT William Ruto has formed an independent taskforce to carry out a comprehensive forensic audit of Kenya’s public debt.

He has directed the team to report within three months.

Addressing the nation on Friday, Dr Ruto said the newly formed taskforce’s dossier will provide the people of Kenya with clarity on the extent and nature of the debt, how public resources were expended, and will recommend proposals for managing our public debt in a manner that is sustainable and with intergenerational equity.

The consequence of withdrawing the rejected Finance Bill, according to the President is “reduction of our revenue targets by Ksh 346 billion.”

He said over the last few days, Kenyan treasury team has been assessing the adverse impact of either reducing the budget by the entire Ksh 346 billion or borrowing the full amount.

ALSO READ: Ruto declines to sign Finance Bill

“Cutting the entire amount would significantly and drastically affect the delivery of critical government services, while borrowing would increase our fiscal deficit by a margin that would have significant repercussions on many other sectors, including interest rates and exchange rates. We have since struck a middle ground and will be proposing to the National Assembly a budget cut of Ksh 177 billion and borrow the difference.”

According to Dr Ruto, additional borrowing will increase Kenya’s fiscal deficit from 3.3 percent to 4.6 percent in order to protect the funding of critical government services.

Such services are:
i. Hiring of Junior Secondary School teachers and medical interns
ii. Funding the milk stabilization program for dairy farmers
iii. Reviving our stalled roads program
iv. Retaining the fertilizer subsidy program
v. Settling the debts owed to farmers in the coffee subsector
vi. Capitalizing the Coffee Cherry Fund
vii. Enabling public sector-owned sugar mills to pay outstanding debts to sugarcane farmers for their deliveries.
viii. Additional funding for the higher education new funding model
ix. Settling arrears owed to counties.
x. Settling arrears for the NG-CDF.
xi. Settling arrears for pensions.

However, Ruto has promised his government will support all those have been affected in the protests.

“Once again, I extend my deepest condolences to those who unfortunately lost their lives. One life lost is a life too many. To the mothers, fathers, siblings, relatives, and friends of those who died, my deepest sympathies and condolences. Equally, to the many others who are injured and recuperating, we wish them a quick recovery,” he said.

President Ruto’s full statement.

“The last two weeks have been a difficult time for us as a country where Kenyans have regrettably lost their lives, many have been injured, property destroyed, and our constitutional institutions attacked.

Once again, I extend my deepest condolences to those who unfortunately lost their lives. One life lost is a life too many. To the mothers, fathers, siblings, relatives, and friends of those who died, my deepest sympathies and condolences. Equally, to the many others who are injured and recuperating, we wish them a quick recovery. The government of Kenya will support all those affected.

Despite all this, as a nation, we are finally having the right conversation, not about our tribes, or personalities, or political formations, but rather issues that affect each and every one of us: issues such as taxation, debt, the budget, corruption, the cost of living, unemployment, and opportunities for our young people.

I make this statement to highlight the actions taken in response to overwhelming public feedback in recent days, to fulfill my commitment to continuously and effectively listen to the people of Kenya, and to underscore my intention to always take public contributions in goo…

Related Articles

Back to top button