ODM party leader Raila Odinga has softened his tone on government borrowing saying any borrowing should also consider “knock-on benefits and effects”.
Speaking at Awendo, Raila said that the government must control international borrowing and limit liquidity ratio and cash flow in and out of the country’s economy to keep inflation low.
“I am not against borrowing. But, we must always consider the knock-on benefits and effects,” he explained.
Raila who is touring Migori and Kuria said corruption in government is driving inflation to worrying levels.
This, he said, is leaving many families struggling to cope while those in authority are least bothered on managing the economic pressure.
“The current economic climate is more difficult for fledgling businesses because they are feeling the economic heat,” Raila said.
Raila said the Jubilee administration’s heavy borrowing and failure to use the money prudently was the cause of economic challenges facing the country.
He added that the Sh250 billion from the Eurobond issue would see every Kenyan paying at least Sh85,000 to service it.
The Cord co-principal is accompanied by Uriri MP John Kobado, Suna East MP Junet Mohammed and Migori Governor Okoth Obado.