Treasury Cabinet Secretary John Mbadi states that Kenya could manage its external debt if corruption is reduced by half. He emphasizes the need for e-procurement to prevent financial losses and critiques the unsustainable 47-county governance structure, advocating for a fewer number of devolved units to improve efficiency amidst rising costs.
The Kenyan government could potentially manage its external debt effectively by reducing corruption by half, according to Treasury Cabinet Secretary John Mbadi. He defended President William Ruto’s fiscal strategy aimed at enhancing revenue and controlling government expenditures, highlighting public procurement as a critical area for addressing financial leakages.
Mbadi pointed to the implementation of e-procurement as a solution to combat losses, stating that the nation loses an estimated Sh2 billion daily to corruption. He emphasized that a reduction in daily theft by 50 percent could save approximately Sh365 billion annually, outpacing the Sh280 billion in external debt due in 2025.
He noted, “If at least half of the Sh2 billion daily losses to graft is curbed, the savings would eliminate the need for external loans.” Furthermore, he expressed concerns over the financial sustainability of the current devolved system, which consists of 47 counties, citing a growing wage bill as problematic.
Suggesting a return to a provincial system of eight or a maximum of fourteen regions, Mbadi argued that the existing structure generates excessive bureaucracy and drains public resources. He illustrated the inefficiency of current county governments, where multiple layers exist, leading to unnecessary expenditures.
With the national wage bill reaching Sh80 billion monthly, amounting to nearly Sh1 trillion annually, combined with Sh1.1 trillion in loan repayments, Mbadi questioned the financial viability for developmental projects. His insights have ignited discourse regarding potential governance restructuring in Kenya to enhance operational efficiency and mitigate expenses.
In summary, Treasury Cabinet Secretary John Mbadi asserts that curtailing corruption by half could significantly impact Kenya’s ability to manage its debt. His critiques of the current devolved governance structure underscore the need for a leaner system to reduce bureaucracy. Furthermore, with the staggering costs associated with national salaries and debt repayments, a reevaluation of governance and efficiency is imperative for future development.
Original Source: www.capitalfm.co.ke
