This archive report was first published on 28 October 2019.
Kenya's public debt has escalated to Sh5.9 trillion, more than three times the country's budget. Critics argue that this high debt and the country's borrowing behavior should guide the decision to take a Sh300 billion loan from the US to build the Nairobi-Mombasa expressway.
According to communication consultant Innocent Kefe, the loan would put a lot of pressure on taxpayers, leading to increased taxes on basic commodities to settle debts. This would result in an unhappy population silently suffering a bad economy and hiked prices.
Mr. Kefe noted that Kenya is listed among top African countries with high public debts and cannot afford to add more debts to what it already has accumulated. He emphasized the need for clear restrictions on how, when, and how much the country should borrow, and for what purpose.
On the other hand, literature and English teacher Aloyce Barasa suggested that if the US government intends to help Kenya build the expressway, it should do so without issuing sanctions in regard to what the government is doing. He argued that the US should keep tabs on what is happening during construction to ensure prudent use of funds.
Mr. Barasa also pointed out that China takes possession of its funded projects for a specific period of time until it recovers its money before handing over to the host government. He questioned why the US cannot do the same if it doubts Kenya's ability to repay debts.
