This archive report was first published on 30 October 2019.
Published on October 30, 2019, by Jaidi Kisero, a renowned author at the Nation.
Acting National Treasury Cabinet Secretary Ukur Yatani's recent Senate appearance to propose increasing the public debt ceiling to Sh9 trillion has raised eyebrows. The proposal aims to bring government borrowing within the thresholds stipulated in the Public Finance Management Act.
However, the proposal has sparked concerns about the government's financial management, particularly in light of the Director of Public Prosecution's (DPP) recent statement on the Kimwarer and Arror dams scandals. The DPP accused former Treasury CS Henry Rotich and his PS, Dr Kamau Thugge, of ignoring an internal Treasury report in March 2017 that cautioned against signing loan contracts for the two dam projects.
The DPP's statement revealed that the debt ceiling may have been exceeded as far back as March 2017, when Arror and Kimwarer loans were being contracted. This raises questions about the integrity of government finances and the need for accountability.
Mr Yatani's proposal is a clear admission that the government has been operating in a fantasy world, where exaggerated GDP growth numbers and unsustainable budget deficits have led to a game of deception. The Kenya Revenue Authority's failure to meet tax collection targets for over 10 years is a testament to this.
One option to restore credibility in government numbers is to negotiate a programme with the International Monetary Fund (IMF). This would help to correct the books and ensure that the government is transparent in its financial dealings.
