State must reduce debt, be accountable

The National Treasury is once again on a global borrowing tour, just days after being turned down by China on funding for the Standard Gauge Railway. In its unending and desperate cycle to finance the budget, the government will once again borrow from Peter to pay Paul through a Eurobond that the Treasury team is selling to investors abroad.

Part of the proceeds will be used to settle a previous sovereign bond that will mature later this year. This appetite for debt is harmful to the country, and the government has been told that many times, but seems to give the concerns a deaf ear. Kenya’s total liability to the international community is rising by the day without commensurate value being generated for citizens. In fact, it seems like the more the government borrows, the less the quality of life of its citizens. Who is the money benefitting? Every day, some State officials are implicated in loss of public funds through inflated bills, and outright theft. Part of this stolen cash is what the Treasury goes out to beg for, thus burdening wananchi with heavy debt repayments that the government attempts to fulfill through additional taxes.

The truth is Kenya is fast heading towards a level where it cannot handle more debt. Instead of constant borrowing, the government must become more responsible on its spending of public resources. It must reduce theft and wastage, and punish those who dip their hand into the public purse.