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Kenya: We’ll Investigate the Tragic Sh7 Trillion Handshake Era Debt – Ruto

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4 years ago

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Nairobi — Deputy President William Ruto has vowed to authorize an investigation into a Sh7tn debt accrued under the handshake era since 2018, terming government borrowing in the second term of President Uhuru Kenyatta’s second term as unsustainable.

As of December 2021, Kenya’s gross public debt stood at Sh8.2 trillion against the country’s nominal GDP estimated at Sh10.7 trillion

While condemning the rising debt, Ruto highlighted that Kenya has the potential to increase revenue collection through digitization of mechanisms within the Kenya Revenue Authority.

“We think debt is the easier route but we must not be slaves of debt from any place or country, it will be the last resort, we must grow the economy, we must empower enterprises and create opportunities in agriculture so that we can grow tax base and run affairs on basis of money we collect,” he said

In his speech after being endorsed as United Democratic Alliance (UDA) presidential candidate, assured that his government will ensure the taxman conducts its affairs independently and professionally.

“We will professionalize systems within KRA, digitize it and ensure the agency collects the taxes well and for the 60 percent not collected as VAT, we will create mechanisms and collect the taxes, we don’t have to fight Kenyan enterprises and destroy people while collecting taxes,” he said.

He claimed that the tax agency had been seized by the Government but vowed to free it and make it a professional entity that would conduct its work without state interference.

“Our tax collection has stagnated because of conflict of interest, lack of a concrete plan but our movement will create a concrete plan so that we increase the tax base, reduce borrowing that can cripple our economy,” he added.

Ruto explained that his government will focus on savings among Kenyans which enhance local borrowing.

“We will create a comprehensive environment for Kenyans to save, many countries have savings of up to 40 pc compared to our 7 percent rate,” he decried.

Ruto, during his London tour a week ago, said that his administration will alter the National Social Security Fund (NSSF) contributions which are currently at Shs 200 for all Kenyans by setting a standard of five percent for everyone’s income.

By doing so, DP said the fund savings will be sizeable enough that will hold resources that will enable the government to source from, and be able to finance development projects with ease.