"There is plenty of optimism among businessmen and investors. With a projected Sh1 trillion public expenditure, a five per cent growth expectation, a positive global economic outlook, and an improved climate, they have enough reasons to smile. Unfortunately, there are several extraneous factors that often turn our hopeful smiles into a grim reality of uncertainty.
Our revenues, if realised as projected, can only finance two-thirds of our expenditure. The balance is largely dependent on Government borrowing, and the commitment by donors on their grants. Our debt levels rose by about Sh700 billion in the past seven years, to about Sh1.2 trillion today. In 2010, we shall spend Sh75 billion in interest payments alone, equivalent to our roads expenditure budget.
Did we invest well the Sh700 billion in loans since 2003? In the same period, we also obtained aid from donors of close to the same figure. If all aid funds and loans were used for development programmes effectively, would the impact have been more? Certainly! Do not be confused — these trillions do not include revenue collected by KRA in the same period, totalling about Sh3 trillion! And our budget is larger than all East Africa’s combined.
Yet, in spite of all these trillions spent, our nation continues to suffer the ignominy of being labelled a ‘failed State’ that is still haunted by hunger, disease and ignorance. Lack of transparency in our budgets cloaks the misplaced priorities and political patronage inherent in resource utilisation. For instance, Telkom Kenya will be paid Sh7 billion for debts assumed by Government when it was sold, whilst our patients cannot find hospital beds and our children learn without teachers and books.
Aside from the ills of chauvinistic tribalism and nepotism, political dishonesty is the latest garb dispensed generously. Our leaders can reject a new constitution simply because it does not catapult them to power in 2012, or because one’s county is not in the Proposed Constitution. We excite our crowds by inciting hatred and hide behind democracy, oblivious to the fact that half of these Kenyans live below the poverty line; and a hungry man is an angry man. In his recent visit, the US Vice President Joe Biden criticised this nation largely on its anti-corruption scorecard. Recently, four PSs were reinstated ostensibly after being cleared by Kenya Anti-Corruption Commission. Was the nation grossly off the mark about the billions lost in the maize and FPE scams? KACC doesn’t clear policy makers of political culpability, as it lacks that mandate. Shall we all apologise to the ministers and PSs for soiling their conscience, as the scams were a figment of our imagination? Be my guest!
Back to the businessmen and investors — the US Secretary of State, Hillary Clinton was categorical this week that African countries should not delude themselves that US will give them special trade status. She chided Africans to change their domestic economic policies to enable trade amongst themselves through removal of trade barriers, tariffs and outdated customs polices.
With July 1 fast approaching, our own EAC is still bedevilled by non-tariff barriers that will undermine success of the common market. National regulations, restrictions on labour movement and other implementation hurdles will dampen growth of businesses within the region.
Lastly, the issue of local and regional security will adversely impact our economies.
Our bad security situation has been aggravated by the instability in Somalia.
Regrettably, we seem to think that the US holds the answer to the political situation in Somalia, or that its military might be the solution.
The world has tried the past 20 years and failed; let’s allow the Somalis to talk to each other and find a solution." Courtesy of Standard Digital.
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