“[Credit is a system whereby] a person who can’t pay, gets another person who can’t pay, to guarantee that he can pay.” – Charles Dickens
We have seen it for a while, as the Kenyan government have spent much more, than they are actually collecting revenue and getting grants. The Jubilee government have not only siphoned funds, but borrowed funds like a drunk sailor. This administration have not considered the implications of the loans and the deficit, they have created.
Uhuru Kenyatta and William Ruto has ordered this ship, it has been known. The Grand Corruption by this government alone has made huge losses. Jubilee knows this and the ones that has followed this government. Have seen it with time and discussed it.
Now suddenly Dr. Wagacha says this:
“ Dr Mbui Wagacha, a policy analyst who left the advisory role in the top office last December after five years, says Parliament has looked the other way as the National Treasury gave the Kenya Revenue Authority (KRA) unrealistic revenue targets only to fall back on debt and expenditure cuts. “We borrowed so much and our headroom for debt has narrowed … there was an over-commitment to capital borrowing and that has left us with narrow headroom for debt,” said Dr Wagacha. “If you look at 2011/2012, we were spending only about 11 per cent of GDP (Gross Domestic Product) directly to repay debt. We are now talking about 57 per cent of GDP in public debt.””(Alushula, 2019).
We know that the state has issues, when the Jubilee are putting austerity measures given by the International Monetary Funds (IMF). While the Jubilee are taking more debt, taking more infrastructure grants and loans, as well as the state is not having the revenue to cover the deficit that has created. This is why the state is paying more of the GDP now, compared to what they did when Kenyatta and Ruto took power.
The Jubilee government could have carried it differently. The Jubilee have used the Eurobonds twice to get fiscal stimulus, but it was also a loan. Therefore, the Jubilee will have to repay those. Just like it has to do with the Chinese loans for the Standard Gauge Railway (SGR) and others, loans that the state has absorbed within the years of Jubilee.
Dr. Wagacha is speaking the truth, but the state has taken the Kool-Aid. Will it find a way to move forward wisely or will it continue the negative cycle of loans to pay-off the old loans, instead of finding revenue and creating a healthy economy. If not just living within its means and not pushing for more, than you can pay for without credit. Peace.
Patrick Alushula – ‘Ex-Uhuru adviser says debt may affect growth in Kenya’ 05.02.2019, link: https://www.nation.co.ke/lifestyle/smartcompany/Ex-Uhuru-adviser-says-debt-may-affect-growth-in-Kenya/1226-4967482-b1tau4z/index.html
President Uhuru Kenyatta is continuing his rants and promises to go against the ones who are corrupt in Kenya. That is become so old, that I think personally, that its only trick he has up his sleeve, except for a few PR Stunt any rare moment to look golden.
A One Trick Pony is defined by Merriam-Webster as: “one that is skilled in only one area, also : one that has success only once” (Merriam-Webster – One Trick Pony’). With that in mind, we can see that it fits Kenyatta well, because it seems like the only thing he has.
Not like it seems like he has the capacity or ability to do anything else. That is why CS Fred Matiang’i becomes his Mr. Fix-It and Mr. Clean. So, that he can ensure some parts of the Big Four Programme actually get done.
What is the legacy and salvage of this man, who every month and twice a week. Not far fetched, are ranting about fighting corruption, stopping corrupt behaviour, but not seeing any significant results. By all means, the chicken thieves are getting caught, but the ones selling chicken at the IEBC took their G-Walk and resigned. They got their deals and earned, but at a later date appointed elsewhere in the government system. That is just the way it is.
The President can speak ill of the practice, of the acts of illusion and the acts of supposed government activity. However, the reality is that his elite, his cronies and the ones associated with him. Usually his Cabinet Secretaries and other have been implicated, but not touched. The ones running State Owned Enterprises are also misusing their position to bag the public money. Same with the Commissioners and others doing it too. Therefore, the President does this, but only let people go, but after a suspension he cave and give them a new position.
That is why, it is boring reading the same-old, same-old story, that is on repeat. It has been said and ranted about for so long. The tale of battle against the corrupt officials, the appointed officials and the close associates of the President. The President are not going against them, but has issues with Local Government and Civil Servants, but they are eating small-fry, which is bad enough. However, when they look at the people around the Executive they seems like untouchable.
That is why certain can skate away, even some who has eaten for instance with the Eurobonds and the National Youth Service (NYS) funds.
This has continued, there are new proof, now it is the Weston Hotel and the ownership of Deputy President William Ruto, who grabbed the public land to build a luxury hotel. That is the capacity and ability of the people around the President.
Still, with that in mind. He still rants like there is no tomorrow. Everyone will meet the fires of hell, if they are even thinking of acting ill and do a fraud or cheat the state of funds from some government entity.
However, the rants are just empty talk. The threats and the warnings has been so many. That it has more discs than Michael Jackson. It has more tunes than any Mixtape Rapper out there. Because, Kenyatta does it on the regular.
It is time to stop the talk, because this is the one trick that he has. It is time for him to change and act real. Apparently, that is to much to ask. Since with all the years as Head of State. Kenyatta could have acted, but at this point it doesn’t seem real. Peace.
Clearly, today’s gazetted news are saying that Kenyatta have the new powers, the new mandate and only answers to President Uhuru Kenyatta directly. That means, by default CS Fred Matiang’i, the CS for the Interior by the new roles in Government. He has the mission and mandate to supervise the government until the President doesn’t see it fit. In that picture, the Deputy President William Ruto is a ship lost at sea with less rudder to steer in the midst of ocean.
Kenyatta has directed by Executive Order, that CS Matiang’i is in charge of the National Development Implementation and also the Coordination of the Government Ministries. So, that the CS will in this role focus on “The Big Four Agenda”. This is directly ensuring the control of the ministries and the resources, so that the new CS has oversight to another level than before. This is really surpassing the DP and securing the loyalty amongst the ones dealing directly with the Handshake.
They are clearly sidestepping Ruto here. They are manoeuvring and toying around him, as the President is offering excessive power and initially delivering him the powers of a Prime Minister. Therefore, making Ruto the token figurehead, but powerless. Sort of like the Vice-President in Uganda, Edward Ssekandi, who only attends funerals and exhibits. Not really governing or running government, but a figurehead and breathing person on behest of the government needed be.
After the handshake, the role of Raila Odinga has already been put in question with the Building Bridges Initiative and how he configures in the shadow of the government. The difference here, is that CS Matiang’i is directly mandated and has a supervision role. Which by default gives him massive powers. That in the end, also makes Ruto less viable. The loser today is Ruto and his people.
We can wonder if Matiang’i has more power than the Building Bridges Initiative. As the Taskforce are put in place, we can wonder how that will be put in play with the new Communication Cabinet Commission (CCC). Therefore, the BBI versus CCC might be a thing, who knows right?
But at this point, Kenyatta and Odinga is best-buddies showing up at functions like they have been friends from day-one. However, the play of changes today can really show that Kenyatta are showing his force towards the Hustler. That Kenyatta trust someone else more and wants him to reign in the Cabinet. Also get the Cabinet more functioning in his regard. That is what you can get out of this move.
We now have Super-CS, a Special, Limited Edition Cabinet Secretary with Ultimate Extended Mandate, which looks like super-seed the Deputy President. Kenyatta has served by the newly minted gazette. CS Matang’i really has laid the golden goose. He gotten a big plate and should be ready eat. While Ruto has to configure how he should manoeuvrer and find his way.
The President should really soon explain his DP how this goes. While I wonder, how Odinga are playing into this too? Kenyatta are really playing them both and I am starting to wonder if this is a prequel to draft for the upcoming elections. Peace.