Nairobi — Orange Democratic Movement (ODM) leader Raila Odinga has vowed to audit the country’s debt to establish its actual size if elected President during the upcoming August polls.
While attributing the country’s debt largely to corruption, Odinga noted that he will mount a serious fight against the vice to seal all the loopholes that lead to the wastage of public resources.
“We acknowledge that even our troubles with debt are in part caused by corruption, kleptocracy and state capture. We will mount a serious war on corruption. Corruption, as it manifests today, is a global phenomenon. We need a new global partnership around this critical issue,” he said on Wednesday at Chatham House in the United Kingdom, London.
The former Prime Minister, who is on a visit to the UK, committed that his regime will go slow on borrowing and focus on setting up mechanisms that will ensure the country relies on its own revenue to sustain the country’s development.
“Although the tax burden on Kenyans is now unbearable, I will make sure Kenya does not default on debt repayment. In future, we will strive to borrow at a favorable interest rate, negotiate repayment periods that are not stressful, and invest in enterprises that give good social and economic returns,” he said.
As of December 2021, Kenya’s gross public debt stood at Sh8.2 trillion against the country’s nominal GDP estimated at Sh10.7 trillion.
Deputy President William Ruto on the other end blamed the handshake for Kenya’s rising debt noting that it had led to an excess borrowing of Sh7 trillion. He also pledged to authorize an investigation into the matter.
While condemning the rising debt, Ruto highlighted that Kenya has the potential to increase revenue collection through digitization of mechanisms within the Kenya Revenue Authority.
“We think debt is the easier route but we must not be slaves of debt from any place or country, it will be the last resort, we must grow the economy, we must empower enterprises and create opportunities in agriculture so that we can grow tax base and run affairs on basis of money we collect,” he said in Kasarani after being endorsed as the United Democratic Alliance (UDA) presidential candidate.
He assured that his government will ensure the taxman conducts its affairs independently and professionally.
“We will professionalize systems within KRA, digitize it and ensure the agency collects the taxes well and for the 60 percent not collected as VAT, we will create mechanisms and collect the taxes, we don’t have to fight Kenyan enterprises and destroy people while collecting taxes,” he said.
He claimed that the tax agency had been seized by the Government but vowed to free it and make it a professional entity that would conduct its work without state interference.
“Our tax collection has stagnated because of conflict of interest, lack of a concrete plan but our movement will create a concrete plan so that we increase the tax base, reduce borrowing that can cripple our economy,” he added.
Ruto explained that his government will focus on savings among Kenyans which enhances local borrowing.