We will reject attempts to increase debt ceiling, Kenya kwanza vows

The Kenya Kwanza Alliance has urged the National Assembly and the Senate to dismiss any request by the CS Treasury for approval of a new debt ceiling.

In a press briefing Monday morning the Alliance said, “We are aware the CS for the National Treasury has prepared for submission to Parliament, a new debt ceiling of approximately over Ksh 12 trillion.”

They urged the CS Treasury not to sign any new loans including floating sovereign bonds during the transition period even as they called on the National Assembly and the Senate to reduce the budget ceiling to ensure a fiscal deficit that does not exceed Ksh 400billion and check on the growing public debt.

The briefing was addressed by ANC Party Leader Musalia Mudavadi who was flanked by the Deputy President William Ruto as well as FORD Kenya party Leader Moses Wetangula.

The Alliance blamed the handshake for the ballooning public debt saying, “It may be of interest to note that debt commitment pre-handshake was Ksh 4.5 trillion and the post-handshake figure has ballooned to Ksh 11.7 trillion. Was the handshake a license to burdening Kenyans with punitive public debt, punitive taxation, punitive food prices and a high cost of living?”

They noted that the Country doesn’t need a constitutional amendment to allocate more funds to counties saying while the budget policy statement 2022 has proposed to maintain the equitable share of the revenue going to counties in FY 2022/2023 at Ksh 370billion, they will support proposals by their Members to increase the equitable share to counties to Ksh 495billon in the FY 2022/2023.

Mudavadi said under the “Bottom-Up Economic Model”, they will support their Member’s proposal for the provision of a Ksh 50billion Fund in the FY 2022/2023 for the establishment of an affordable Credit scheme to support small businesses (MSMEs), expand the tax bracket, and increase tax collection thereby reducing the high level of domestic borrowing that has crowded-out businesses.

The Alliance has also called for the autonomy of the police and the Judiciary saying the Cabinet Secretary for National Treasury should in line with the Constitution designate the Inspector-General of police as an Accounting Officer for the National Police Service.

“This will provide financial autonomy and assure the Country of independent and effective policing services, especially the office of the DCI in the fight against corruption and maintenance of security across the country,” They said.

They have also vowed to support proposed amendments to provide an additional Ksh 12billion in the FY 2022/2023 for the operationalization of the Judiciary Fund in line with the Constitution to offer the Judiciary financial independence, autonomy, and the financial muscle to succeed in the fight against corruption

MPs affiliated to the Kenya Kwanza Alliance have also proposed an amendment for the provision of an additional Ksh 2 billion required for drought mitigation, a further additional Ksh 5 billion for fertilizer subsidy program to bring the fertilizer prices down to about Ksh 2,500 in the FY 2022/2023, among other proposals.