Why this is the time for Kenya to re-evaluate external debts

Kenya has requested for another loan from China to construct phase three of the Standard Gauge Railway. The World Bank recently warned the country about its rapidly growing debt burden. This is a prelude to an economic disaster.

The government should go slow on borrowing. The country needs to tap more local resources to generate income and use it for development projects and borrow less to complete them. This will be a relief for Kenyans who already owe China more than Sh18,000 each.

Nobody is denying that the standard gauge railway is a good idea for the country. It is beneficial for industries along the corridor between Mombasa and Kisumu. It will spur growth and rejuvenate more towns and businesses on the route. It will ease movement and boost development projects.

But the most worrying part of the project is that it is digging us deeper into debt. Economists are now describing it as a big loophole in Kenya's fragile economy.

The government ought to tap financing from within. It must seal all corruption and public wastage loopholes and use the savings for projects. If all money in Kenya was transparently accounted for and used properly, we would not need to borrow so heavily.

Kenya would undergo a revolution. Yes we need development, but it must come with less borrowing, less corruption, and high integrity. The SGR and other mega projects have cost Kenyans too much. One wonders whether Kenyans will reap enough returns from them.

Whether they will or not, the government must set a limit on its borrowing. This will enable it to maximise investment in locally available resources.