President Ruto Announces Measures to Address Kenya’s Public Debt Crisis
By Melvis Gala
President William Ruto, speaking from State House, Nairobi, has launched an independent task force aimed at conducting a comprehensive audit of Kenya’s public debt. This initiative comes amidst growing concerns over the country’s financial management and its impact on future generations.
The task force, mandated to deliver its findings within the next three months, is expected to provide actionable insights into resource management to mitigate the burden of debt on the nation. President Ruto underscored the importance of these findings in shaping sustainable fiscal policies moving forward.
In addition to the audit, the government has outlined a series of immediate measures to stabilize the economy. These include a reduction in the national budget by Ksh.177 billion, alongside plans to borrow Ksh.169 billion. The recent loss of Ksh.346 billion due to the withdrawal of the Finance Bill, 2024, has further necessitated decisive action.
Key reforms announced by President Ruto include the dissolution of 47 state corporations with overlapping functions, a 50% reduction in government advisors, and a similar cut in budget allocations for renovations across ministries. Non-essential travel by state and public officers has been suspended, and participation in public contributions by state officers and public servants prohibited.
Addressing concerns over increased borrowing, President Ruto assured that despite the rise in Kenya’s fiscal deficit from 3.3% to 4.6% of GDP, the government remains committed to prudent financial management. The borrowed funds, totaling Ksh.169 billion, will be strategically allocated to support critical government services amidst the ongoing economic challenges.
Kenya’s public debt currently stands at Ksh.11.14 trillion, primarily driven by external loans and the impact of exchange rates on domestic debt. The government’s proactive measures aim to streamline expenditure, enhance transparency, and safeguard the nation’s economic stability.
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