This archive report was first published on 16 November 2019.
President Uhuru Kenyatta's recent comment on Kenyans' financial struggles has sparked widespread outrage, with many questioning the government's handling of the economy.
According to a report, during a meeting with the Cabinet and parastatal heads, the President expressed his confusion over why Kenyans are in dire financial straits.
However, critics argue that the President's comment is tone-deaf, given the government's significant debt to suppliers, which stands at Ksh. 300 billion, with only Ksh. 10 billion set aside in June to make payments.
Counties also owe their suppliers an additional Ksh. 98 billion, with the President ordering the release of Ksh. 34 billion to compensate county contractors.
The government's heavy local borrowing has also been cited as a major contributor to the country's financial woes, with banks choosing to lend to the government over small and medium-sized enterprises, thereby suffocating them of much-needed credit.
Furthermore, the Treasury has had to ask the judiciary and parliament to cut their budgets, with the Chief Justice decrying the financial constraints faced by the judiciary.
The Kenya Revenue Authority has also struggled to meet its revenue targets for three years, and despite this, parliament has approved the raising of the country's debt ceiling to Ksh. 9 trillion, well above the national budget and close to the size of Kenya's economy.
As one commentator noted, asking why Kenyans are broke is akin to asking children why their parent is broke.
Yvonne Okwara is a senior news anchor at Citizen TV, and this report is her take from the popular current affairs program News Gang, which aired on November 14, 2019.
