Election considerations clearly trumped economic ones when Finance Minister Robinson Njeru Githae read his statement on Kenya’s largest-ever Budget nine days ago.
Sadly, they appear to have overshadowed debate both inside and outside Parliament over the direction the economy should take.
This is an unfortunate development that taxpayers may come to rue should the global economy slide into crisis again as it did four years ago.
Kenya’s economy is still recovering from the damage caused in 2008 and 2009 by post-election violence, drought, food and oil price increases and the global financial crisis. Growth is relatively weak and unlikely to rise dramatically. But hard times or not, the man who once urged Kenyans to eat rats as a sign of commitment to austerity decided we should have the fattest bull possible.
Just days after the World Bank warned developing countries to cut spending and pay down their debts, Githae had to step up to promise record spending and borrowing to pay for a Sh1.5 trillion Budget. The Fates have conspired to force his hand on spending at a time he should be acting with caution.
Public sector unions want more money, an expensive election is in the works, and the country’s military is abroad, fighting a costly war. Food security is under threat from disease, requiring more money to restock grain reserves.
On top of all this, Githae wants to press on with reforms, welfare and social spending. If only the economy were still growing at seven per cent, as in 2007, giving him a good shot at raising the Sh800 billion he wants to throw at projects and ministries. If only he could borrow or beg for the rest without agreeing to ruinous terms.
Given the serious doubts the economy will meet the three-year estimates Githae and his team project, there should be voices urging some fiscal restraint.
It may not be what voters want to hear, but it is the only true thing a responsible leader can say. All those planning to take over the running of Government in the coming year need to think through the difficult choices that may become necessary if the world is in crisis.
