This archive report was first published on 16 October 2019.
On October 16, 2019, Amani National Congress (ANC) party leader Musalia Mudavadi sounded the alarm on Kenya's growing debt, warning that the country's appetite for expensive loans could lead to economic anarchy.
Mudavadi criticized Parliament's decision to raise the borrowing ceiling to Sh9 trillion ($85.7 billion), calling it 'unjustifiable.' He noted that the figure was approved without a clear explanation of how it was arrived at, despite some Members of Parliament raising questions on the issue.
Speaking at a parliamentary by-election campaign rally in Kibra, Nairobi, Mudavadi claimed that most institutions were failing due to poor leadership. He also criticized the Treasury Cabinet Secretary for failing to justify the increase in debt ceiling.
According to a World Bank report released last Wednesday, Kenya is drifting towards debt distress due to the government's huge appetite for high-interest loans. Mudavadi stated that even before the dust had settled on the new borrowing, the Treasury CS had already made commitments to travel to Washington DC to negotiate with the IMF and World Bank to borrow more money.
He regretted that Kenyans were not getting value for their money, as debts would push the country to the limits, causing the economy to drop. Mudavadi also blamed Nairobi County Government's Planning department for failing to approve architectural designs and construction worth Sh8 billion, which had been submitted since June.
He called for peaceful campaigns in Kibra before the November 7 by-election and urged leaders to compete based on policies rather than resorting to violence.
