The former Prime Minister noted that the President wants to treat insurance compensation as income and introduce a 16 per cent VAT meaning insurance compensation incase of an accident will no-longer be seen as compensation of what was lost.
Raila said that looking at the proposals, one cannot help asking what planet does Ruto live on or whether he understands what Kenyans are going through. He accused Kenya Kwanza of lying that they inherited a broke country while the truth is the cash crunch has been caused by economic mismanagement, wasteful spending, corruption and hiring of incompetent personnel. The Azimio leader claimed that the worsening economic situation has been manufactured in State House and the Office of the President in the last eight or so months.
He said contrary to what Ruto promised and what he is saying, borrowing has gone up instead of coming down, but strangely the cash crunch continues.
"In September 2022 when former President Uhuru Kenyatta officially handed over to Ruto, Kenya's total debt was Sh8.701 trillion of this Sh4.33 trillion was external debt while Sh4.366 was domestic debt while at March 2023, that is in six months after Ruto took over, Kenya's debt rose from Sh8.701 trillion to Sh9.390 trillion with debt rising by Sh689 billion under Ruto," said Raila.
The former Prime Minster noted that the external debt that stood at Sh4.33 trillion in September 2022, rose to Sh4.851 trillion in March 2023 with domestic debt rising from Sh4.366 trillion in September 2022 to Sh4.539 in March 2023.
Domestic debt
He said between September 2021 and March 2022 the debt rose by Sh405 billion from Sh7.96 trillion to Sh8.401 trillion with the external debt being Sh4.209 trillion while domestic debt stood at Sh4.192 trillion.
Raila claimed current government has borrowed more than any other regime.
"They have removed subsidies, raised taxes but the cash crunch has continued, they cannot pay salaries, they cannot disburse money to schools, they cannot disburse money to counties, they cannot disburse money to the elderly, they cannot finance the NHIF and nearly all major infrastructure projects have stalled," he said.
He said Ruto is trying to change the country's debt ceiling from the current absolute number of Sh10 trillion to a moving number of 55 per cent of GDP while the debt level is already 60 per cent of GDP and to beat that violation of the law, he (President) wants to force an amendment to the Public Finance Act to allow the National Treasury and not Parliament to set new debt ceiling.
"As the Bill heads to the National Assembly, Ruto must be reminded that excessive taxation is stifling growth, that when people have to park cars at home because of cost of fuel, it is bad for the economy, that when Kenyans postpone travelling up-country because they can't afford fuel or fare, it is bad for the economy," said Raila.
Present during the meeting were Wiper's Kalonzo Musyoka, Narc-Kenya's Martha Karua, Usawa's Mwangi wa Iria, ODM deputy party leader Wycliffe Oparanya, Roots' George Wajackoya and Jubilee's Jeremiah Kioni.
National Assembly Minority Leader Opiyo Wandayi,ODM National Chairman John Mbadi, Azimio La Umoja Economic Council Chairman Nderitu Mureithi, former Nyeri Deputy Governor Caroline Karugu and Kibra MP Peter Orero were also present.