The advent of Covid-19 pandemic exacerbated Kenyans woes, as Jubilee government continued funding infrastructural projects to the detriment of many Kenyans who were suffering from job losses, reduced income and closure of businesses such as hotels, bars and entertainment joints.
Is the country’s debt sustainable?
Kenya under Uhuru’s regime has been severely hurt by the scourge of increasing debt rate. According to Statista, the national debt of Kenya amounted to about 54.93 billion US dollars in 2019, with an upward projection of 127.43 billion US dollars by the year 2025. In 2013, Kibaki bequeathed Uhuru a government whose debt stood at 16 billion US dollars, but currently it stands at 70 billion US dollars.
Reports from the 2021 Budgetary Policy Statement disclosed that, in June 2020, Kenya’s public debt was Kshs.7.06 trillion, which was equivalent to 65% of the country’s Gross Domestic Product (GDP). In its analysis, Central Bank of Kenya, ironically, concluded that the public debt was sustainable.
Despite the huge public debt, Kenya still maintained her appetite for borrowing. Uhuru’s government continued going for extra loans to finance some of the infrastructural projects. Just like his predecessor Mwai Kibaki, Uhuru’s administration chose China has its largest bilateral creditor.
Recently, Kenyans protested the decision of the International Monetary Fund (IMF) to loan money to the country. Twitter and Facebook were awash with all manners of criticism as citizens attacked the government over its gluttonous borrowing attitude.
In an online petition that was signed by over 200,000 Kenyans, they urged IMF to reconsider its decision pinning their arguments on imprudent misuse of previous loans. Kenyan government has been ravaged by years of corruption as President Uhuru once told the public that the government was losing 2 billion Kenya Shillings on a daily basis.
The railway line linking Nairobi to Mombasa was built with Chinese loan; but there were suspicions about the operating costs, and the government cannot account for the huge loss. The Arror-Kimwarer dam project that was partially funded by the World Bank is still a white elephant project, with billions of money meant for its completion down the drains.
Due to the global pandemic, Kenya secured a 6-month moratorium on $245 million debt repayment to China. Experts warn that the debt repayment delays won’t be sufficient to place public finances on a sustainable equilibrium, without a judicious policy framework.
The fourth president of Kenya has failed to develop a growth strategy centering on the country’s social and demographic structure. Uhuru’s administration has failed to create new jobs and continues to overtax nationals to fund the ballooning wage bill and service some of the maturing loans.
Kenya’s Political Challenges
Initially, President Uhuru Kenyatta’s government received serious backlash from the opposition under the leadership of Raila Odinga. When Uhuru was elected as president in 2013, Odinga unsuccessfully challenged his win in the Supreme Court.
Former Chief Justice Dr. Willy Mutunga quashed Raila’s petition.
Democracy was on trial, as opposition leaders lambasted Supreme Court judges for upholding Uhuru’s victory. The opposition organized a series of street protests which saw the disbandment of the Electoral Commission of Kenya (ECK).
In 2017, Uhuru was re-elected as Kenya’s president. This time the opposition succeeded in petitioning the electoral outcome that led to the annulment of Uhuru’s win. The then Chief Justice and President of Supreme Court, David Maraga, nullified the presidential results and ordered for repeat elections.
The irate president, once again, hit the campaign trail and threatened to ‘revisit’ the issue in retaliation to the shocking verdict. Uhuru’s utterances marked the genesis of the conflict between the Executive and the Judiciary. As soon as he was re-elected, the judiciary’s budget was sliced.
ODM leader Raila Odinga gave the president sleepless nights. He boycotted the repeat elections, citing bias from the electoral body. Just like ECK, Raila had lost faith with the Independent Electoral and Boundaries Commission (IEBC).
He alleged there was massive rigging and called for a thorough audit of the commission. Later on, Raila took an illegal oath, at Uhuru Park in Nairobi, as the ‘people’s president.’ His swearing in was ensued with arrests of Kasarani MP TJ Kajwang and Lawyer Miguna Miguna. The two were accused of participating in an illegal oath.
After spending some days in detention, Miguna was deported to Canada. The Ministry of Interior, through the department of immigration, facilitated the process of his deportation. His attempt to come back hit a snag, as the government re-deported him.
Jubilee mandarins wondered why Raila had not been arrested, yet, he was the key suspect in the treason case, where he was sworn in as a ‘president’ yet there was a constitutionally elected Kenyan president.
Handshake Politics
Uhuru Kenyatta and Raila Odinga chose to put aside their political differences, and walked down the stairs of Harambee House, at the full glare of the media, shook hands and made a major announcement that caught the entire nation in surprise.
Raila’s allies were also astounded by the unexpected news that their leader had chosen to work with the president. The golden handshake between the two leaders was the beginning of the separation of the president, and his deputy, William Ruto.
As the president advanced his handshake agenda, Ruto chose to start his presidential campaign. Ruto sensed that he was no longer needed by Uhuru. His presidential quest was jeopardized by the ‘handshake.’
Handshake conceived Building Bridges Initiative (BBI), which was to be used as a tool of amending Kenya’s constitution. When the BBI bill was drafted it was approved by most county assemblies, with the exception of a few counties that supported the deputy president.
The ‘handshake shock’ led to the dethronement of MPs allied to Ruto, where they were stripped off their parliamentary duties. Ruto’s allies who were ousted include: former Senate Majority Leader Kipchumba Murkomen, former Senate Majority Chief Whip Susan Kihika, former National Assembly Majority Leader Aden Duale and former National Assembly Chief Whip Benjamin Washiali.
Apart from House leadership, the 2020 Jubilee purge also saw the relegation of Ruto’s allies from various House Committees. Kikuyu MP Kimani Ichungwa was axed from chairmanship of the prestigious Budget and Appropriation Committee.
The die was cast, and the center was no longer holding together, as Uhuru and Ruto were falling apart. Uhuru had found a worthy ally in the name of Raila.
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