NAIROBI, DEC 12 – President William Ruto now says that the country is at no risk of falling onto debt distress even as the state continues to use a huge part of its revenue collection to service debt.
However, he points out to World Bank’s ranking which placed Kenya at 29th fastest growing economy in the world as well as reduction of inflation in the last one year.
This barely a week after his deputy Rigathi Gachagua likened the country’s economic state to a patient in the ward. Gachagua, who was speaking at KMTC graduation ceremony on 7th of December had said that the Kenya Kwanza had inherited a government with a 9.6 trillion debt. He further said that the government is using 70% of its revenue collection to pay debt.
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However, his boss seems to optimistic as he assures Kenyans during his Jamhuri Day celebration speech that the country is not at risk of debt distress. He said in the last one year the people of Kenya has displayed patriotism even as they face harsh economic times. He said thaey have made painful decisions that reversed the country from plunging into “catastrophic cliff” debt distress.
“The greatness and patriotic devotion of people of Kenya has been on display during the past year. Together we have made right choices. Sometime it’s taken difficult and painful decisions to steer Kenya back from t edge of of catastrophic cliff of debt distress and move our country to a new direction,” Ruto said.
Since the Kenya Kwanza regime took power in September last year, taxes has increased including the controversial 16% Value Added Tax (VAT) that the government imposed on its citizens. The head of state said that the without the sacrifices that people of Kenya made the country’s economy would been overwhelmed.
“There is every reason to belief that without sacrifice and hard work over the past one year, the crisis, threats and challenges in global economic and geopolitical environment confronting us would have overwhelmed us as indeed it has many countries,” he said, adding that they had to reduce government expenditure differ implementation of some development programs to stabilize the economy.
According to Ruto, the sacrifices made by Kenyans has paid off. He further said that Kenya’s inflation rate has reduced from 9.2% to 6.8% since Kenya Kwanza took power a year ago.
“These sacrifices have paid off. I can now confirm without fear or contradiction that Kenya is safely out of danger of debt distress. The economic indicators points to good news. Inflation is now 6.8% down from a high of 9.2% a year ago. In the last six months we have grown at a rate of 5.4% making Kenya the 29th fastest growing economy in the world according to World Bank,” Ruto assured.
