This archive report was first published on 18 November 2019.
As of 2019, Kenya's population stood at 47.5 million, with every child born owing the lenders $1,300. The country's debt burden has become a pressing concern, with the International Monetary Fund (IMF) recommending a debt ceiling of 45% for developing countries. Kenya's debt, however, has surpassed this threshold, reaching a staggering Sh50 trillion ($50 billion).
The government's annual borrowing to retire matured loans, finance infrastructure, and address budgetary expenditures has reached nearly $2 billion. This excessive borrowing has raised concerns that the national debt burden may soon become unsustainable, risking economic decline.
One potential solution to this crisis is the sale of residency permits and citizenship to foreign nationals. This approach has been adopted by several countries, including the US, Spain, Canada, and Thailand, as a means of raising revenue to fund developmental projects and reduce debt.
Under this proposal, wealthy individuals from Africa, Asia, and Europe would be able to purchase Kenyan citizenship and passports, which would grant them access to the country's economy and resources. The revenue generated from these sales would be used to reduce the national debt and fund development projects.
While some may view this proposal as a radical solution, it is essential to consider the benefits it could bring. By tapping into the wealth of foreign nationals, Kenya could potentially wean itself off its addiction to loans and reduce its debt burden. This, in turn, could have a positive impact on the country's economy and its people.
However, it is crucial to note that this proposal is not a magic bullet for curing Kenya's debt problem. Rather, it is a supplementary measure that could be used in conjunction with other economic reforms, such as supporting manufacturing, entrepreneurship, and local production, as well as implementing austerity measures and financial discipline.
