Cord leader, Raila Odinga has cautioned the extent which the government is borrowing funds, terming it as, uncontrolled borrowing.
Speaking during the third Annual Devolution Conference that ended in Meru on Friday, Raila stated that in the 2015/2016 financial year, the National Treasury allocated sh362 billion for debt repayment, expressing concerns that the figure rose to sh433 billion in 2016/2017, an increase of sh71 billion, 20 percent in one year.
Raila, however, cautioned against the trend.
“At this rate, in five years, the country will be spending all the tax revenue on repaying public debts with nothing left for capital and recurrent expenditures. Sooner rather than later, debt service will take priority,” said Raila.
He also said that the borrowing will mean less revenue share for counties and more trouble for devolution.
“Counties will suffer, yet they are not getting any shares of the borrowed money. Let’s join hands and raise the alarm now. We have been flirting with disaster and we now seem to be embracing it in the name of debts,” added Raila.
Raila described devolution as a baby which has to be nursed and babysat to maturity despite its deformities.