State under Pressure over Debt and Borrowing Framework Policy

The National Treasury is being requested by the Civil Society Organizations to re-open the development of the proposed debt policy and management framework for meaningful public participation.

The Executive Director, the Institute for Social Accountability, Wanjiru Gikonyo, noted that the policy does not represent citizen views as enshrined in Constitution Article 10 and 201 and the Public Financial Management Act of 2012.

The policy released last week by the National Treasury “does not capture the current context of public debt in Kenya… yet the country is implementing ever-increasing budget deficits, thereby worsening debt sustainability amid revenue shortfalls and expanding government expenditures.” this according to the CSOs.

The debt policy was criticized by the organization for failing to provide the context of debt and to address the measures of government plans to employ to reduce debt.

Concern was raised by the Civil Society over how the ordinary tax payer is being affected by the increasing indirect taxes from treasury instead of instituting budget cutbacks.

The proposed tax increase was termed as an economic crime against poverty afflicted people by the Civil Society and demanded to have the government cut wasteful projects and expenditure and corruption to plug the deficit.