President William Ruto acknowledges the alarming state of Kenya’s debt crisis, labeling it as one of the greatest challenges since taking office.
President Ruto addressing Jubilee leaders at State House, Nakuru, expressed deep concern over the escalating national debt, recognizing it as a significant hurdle to his administration’s development goals.
“The only problem is debt and that is what has been the biggest headache for the last year. If for every Ksh10 collected, Ksh7 goes towards debt then there is a problem.
“The remaining Ksh3 shilling then is used to pay for salaries, pay money to county governments and develop the country. My intention is to flip it,” he expressed.
The head of state says The ballooning debt in our country poses a substantial obstacle to the realization of the country’s development plans.
The President emphasized that the key to reducing the country’s debt lies in adopting a strategy akin to that of former President Mwai Kibaki, who was widely praised for his successful tax collection initiatives.
President Ruto: President Kibaki demonstrated that a robust tax collection system is pivotal in mitigating the impact of a burgeoning national debt. It is a strategy we must embrace and implement effectively.
“Kibaki came into office and we were collecting Ksh200 billion and he said that we have to go the VAT way. After that, we reached Ksh1 trillion by the time he left office.
“People only want to be clapped for when they are elected. Why? No one is elected to be clapped for. We have to change this country and those opposing us will be the first to clap for us,” Ruto stated.
Kenya’s current debt portfolio stands at over Ksh10 trillion with some of the biggest lenders being multi-national financial institutions like the World Bank, the International Monetary Fund and developed countries such as China.