Gatundu South MP Moses Kuria has said Kenyans have nothing to celebrate this Christmas.
In a Facebook post on Friday, Kuria gave several reasons for the same, arguing that the country's economic head was stuck in two traps.
The lawmaker noted that the government recurrent expenditure of Sh1.5 trillion continues to consume all tax revenues from the public.
According to Kuria, this means the government borrows for the entire development budget, debt repayment and pension payments.
"In this convoluted economic mathogothanio, Treasury has zero leg room for discretion let alone capacity to spur economic growth," said Kuria.
The outspoken MP further noted that the private sector cannot support the public sector as 'it is equally injured'.
Kuria proposed an increase in lending interest from the current four per cent to 10 per cent, arguing "this will provide banks with more headroom for risk-based pricing and hopefully re-ignite private sector activity through lending to SME’s while at the same time denying Treasury of easily available funds for domestic borrowing thus forcing it to adopt innovative economic thinking."
He said the government needs measures which include legislative to force national and county governments to pay suppliers and contractors on a weekly basis, noting that the proposed measures have worked in other countries.
Kuria further proposes the March 9 handshake should be used to foster economic growth in the country.
"We must take advantage of the handshake to reform the civil service through a massive ‘voluntary’ early retirement that will retrench at least half of public workers," added Kuria.
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