Can you imagine Treasury CS saying our debt is sustainable because we haven’t defaulted yet. This is the talk you expect from bloggers.
By the time you’re defaulting on debt you will be facing debt disaster not debt distress.
The CS should be made to understand that debt is not just about ability to repay but also about the interest we are paying.
The cost of servicing the debt is no longer sustainable. Over 25% of revenues are going into debt expense.
How shall we finance other things under such circumstances? If we continue borrowing to bridge the gap we will sink deeper into debt.
We could find ourselves spending even 50% of revenues on debt interest.
We must seriously reduce our public spending. We can’t continue spending what we don’t have without facing the consequences.
This Six lane KShs 160 billion Rironi-Mau Summit highway isn’t a priority at this point in time. Wish such money was spent on something more economically beneficial like universal access to affordable, reliable and fast internet.
In as much as this is touted as a PPP deal, I wonder what will happen if Kenyans fail to afford the toll charges. This could turn into a loan. It is unfair to commit the country to such deals without parliamentary authorisation through the budget.
Besides it is ridiculous to charge Kenyans Road Maintenance Levy and then charge them toll fees. The Road Maintenance Levy charged per litre of fuel was introduced to replace toll fees.
By Empraim Njega via FB