Treasury Cabinet Secretary John Mbadi stated that Kenya could clear external debt if corruption is reduced by 50%. He highlighted public procurement as a significant issue draining finances and suggested a reduction in the number of counties for more efficient governance. With the current wage bill and loan repayments, he urged a reevaluation of government structure to foster financial stability.
Kenya has the potential to settle its external debt obligations if the government successfully reduces corruption by 50%, according to Treasury Cabinet Secretary John Mbadi. He defended President William Ruto’s fiscal consolidation strategy aimed at enhancing revenue while curbing excessive spending, citing public procurement as a major source of financial drain due to corruption.
Mbadi reported that addressing corruption could yield significant savings, estimating losses at Sh2 billion daily. By reducing graft by half, the country could save Sh365 billion annually, surpassing the Sh280 billion in external debt due in 2025. He emphasized that these savings could eliminate the need for external borrowing.
In addition to concerns about corruption, Mbadi criticized the current devolved government system, asserting that the 47 counties are financially unsustainable, largely due to a rising wage bill. He proposed a return to eight or, at most, fourteen regional governments to decrease bureaucracy and financial drain.
Highlighting inefficiencies, he noted the existence of numerous government roles in counties that contribute to high salary expenses. With the current national wage bill at Sh80 billion monthly, totaling nearly Sh1 trillion annually, there is limited capacity for developmental funding. Mbadi’s opinion suggests a reevaluation of the governance structure to enhance resource efficiency and reduce operational costs.
In summary, Treasury Cabinet Secretary John Mbadi posits that Kenya could manage its external debt effectively by significantly curtailing corruption. He advocates for restructuring the devolved government system to improve financial sustainability. With current governmental expenses surpassing income, a critical evaluation of the governance framework is essential for better resource allocation and efficiency.
Original Source: www.capitalfm.co.ke
