Fellow Kenyans, the headline may be screaming or call it alarmists, the signs may not be so obvious to you BUT going by recent actions taken by the government, keen observers have indicated that it is safe to speculate WE ARE BROKE!
The Key indicators of a broke government include inability to meet its recurrent expenditure (paying salaries, servicing loans), reduced revenue collection, sudden increase in taxes (VAT et el), disposal of assets, excess domestic borrowing, slow implementation of commissioned long term projects among others.
Here are two opinion leaders’ Facebook status that raise a red flag; they both have access to information than most of us, reason why we should take them seriously:
“Is our government broke? Let us face it, if this is the case let them come out clean so that we all pull together.
Why have they delayed Doctors’ July salaries? Kama kuna shida hapa Kenya ni kwetu let us sit down and reason together. The same government wanted to delay/ withhold teachers July salaries, are these coincidences or we could be broke?.
We need the respective cabinet secretary and the principal secretary in finance to clear the air”
“My bet- The Government of The Great Republic of Kenya is unprecedentedly BROKE. Many ‘writings’ are inscribed on the wall.
Even the austerity measures I ever talked about several weeks ago may only do so much. More domestic borrowings beyond the current levels may also hurt more.
There is utter hopelessness setting in across all cadres of the societal pyramid. Kenyans, a very resilient breed, now requires hope messages more than before.”
Jeff Maina Says:>
….so it is true the government is BROKE, a friend from business school working at Central Bank as a senior economist confirms, SAD, what next?
Emeka Mayaka a journalist with links to top bureaucrats also added his voice:
“The elephant in the room is that the government is broke. Can some tough newsroom honcho grab the story and send it to the market. I have it on the authority of senior bureaucrats”.
N/B When the 2013/14 Financial estimates were presented in parliament, Cabinet secretary for Finance went on record saying he had no idea how the funds will be raised!