Kenya risks plunging into a financial crisis if the Jubilee government doesn’t go slow on foreign loans, Amani National Congress (ANC) party leader Musalia Mudavadi has warned.
Speaking during his tour in Kibra to campaign his party’s candidate Eliud Owalo on Tuesday, Mudavadi said that the recent borrowing of the government is not good news at all.
He reminded President Uhuru Kenyatta and his Deputy William Ruto to rethink about the country’s debt burden.
He said that he is concerned with the fact that a large part of the borrowed funds end up in people’s pockets at the expense of the tax payers.
He asked the Jubilee government to fight corruption in a bid to restore the country’s lost glory.
Mudavadi also said that parliament errored by increasing the debt ceiling of the country from Sh.6 trillion to Sh. 9 trillion.
“It was unfair for a parliamentary committee to approve and increase debt ceiling from Sh6 trillion to Sh9 trillion when they cannot tell Kenyans how they arrived at the magical figure.
"Even some Members of Parliament raised questions on the issue, but the Treasury Cabinet Secretary was unable to make a justification,” said Mudavadi, as quoted by Standard.
Mudavadi also said that it is evident that President Uhuru and Ruto have lost touch with the electorate considering their actions.
He further said that the foreign loans attract huge interest rates, which makes them unreliable.