Raila, Ruto camps clash over public debt during House debate

The raging debate on the country’s public debt took centre-stage in Parliament yesterday, with lawmakers trading barbs and accusations on who was responsible for the situation.

While MPs allied to Orange Democratic Movement (ODM) leader Raila Odinga insisted Deputy President William Ruto was part of the government that plunged the country into cesspool of runaway debt, supporters of Dr Ruto blamed the Handshake between the former Prime Minister and President Uhuru Kenyatta for the situation.

The accusations and counter-accusations came up during debate on the Public Debt Management Authority Bill, which is sponsored by Nambale MP Sakwa Bunyasi.

While contributing to debate on the Bill, Minority Leader John Mbadi fired the first salvo, saying the Jubilee administration went on a borrowing spree in its first term in order to discredit Mr Odinga.

“Money was borrowed to clean the streets of Kibra just to show that Raila Odinga did not help the people of Lang’ata. Another borrowed amount was used to clean the streets of Kondele. Who goes to the bank to borrow in order to clean his compound?” Mr Mbadi wondered. “The Jubilee government went on a borrowing spree, doing projects that they could not sustain... they opted to go for expensive loans with high interest rates.”

The ODM chairperson, however, said borrowing is not wrong as long as the purpose is clear and the money is used prudently.

“Kenya must borrow. No country can survive without borrowing. The world is just coming out of the Covid-19 pandemic, which hit every country, including the USA. Politicians should stop cheating the public that Kenya should not borrow,” Mr Mbadi. 

Mr Mbadi accused Kenya Kwanza Alliance leaders of insincerity on the public debt matter.

“You cannot campaign for five years and not say anything about corruption. This country needs people who can fight corruption,” Mr Mbadi said.

Kiminini MP Chris Wamalwa, a supporter of the Dr Ruto-led Kenya Kwanza Alliance, said borrowed money should strictly be for development purposes.

“It is wrong to borrow in order to clean the streets. When you borrow more, it’s the common man that suffers in terms of taxes,” Mr Wamalwa said.

Bahati MP Kimani Ngunjiri said the House was duped into raising the public debt ceiling last year.

“There was a time we were asked to raise the debt ceiling to Sh9 trillion. We were told that the interest on the money that was being borrowed locally was too high and that the government needed to borrow from outside at a lower rate,” Mr Ngunjiri said.

Kiharu MP Ndindi Nyoro said borrowing increased after the Handshake between President Kenyatta and Mr Odinga in March 2018, from Sh4.5 trillion to 11.7 trillion.

“Where is this money? We can’t see it and we can’t trace it,” Mr Nyoro said.

However, figures from the National Treasury indicate that as at December 24, 2021, the public debt was Sh8.4 trillion and is projected to rise to Sh8.8 trillion by June this year.

Seme MP James Nyikal, an ally of Mr Odinga, told off those blaming the handshake for the mess, saying borrowing for infrastructure projects such as the Standard Gauge Railway line happened before the handshake.

Garissa Township MP Adan Duale, a close friend of the DP’s, said within one year after the handshake, the country illegally borrowed Sh7 billion that was never approved by the Cabinet.

“The Cabinet never sat between 2018 and 2019 because they did not want the presence of William Ruto,” Mr Duale said.

The former majority leader pointed out that public debt will be a key agenda in the run-up to the August General Election and should not be discussed in a pedestrian manner in defence of any particular candidate.

“Whoever will form the next government, if they don’t fix the economy within 18 months, then the economy will collapse,” Mr Duale said.

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