NAIROBI, Kenya February 21 – Directors of Kenya’s Kwanza Alliance led by Amani National Congress (ANC) Musalia Mudavadi have warned the Treasury against engaging the country in further debt,

Speaking at a press conference on the budget proposals in Meru, he urged MPs to reject Cabinet Secretary Ukur Yattani’s demands to adjust the debt ceiling from the current 3 trillion shillings to 55% of the country’s gross domestic product.

Mudavadi, who was flanked by Vice President William Ruto and Moses Wetangula of Ford-Kenya, claimed the debt pledge amounted to 4.5 trillion shillings before President Uhuru Kenyatta and the Movement leader Orange Democratic Party (ODM) Raila Odinga conclude a political cooperation pact in March 2018.

“The National Assembly and Senate must avoid any further strangulation of Kenyans with additional debt, by refusing any request to approve any new debt ceiling. We are aware that the CS of the National Treasury has prepared for submission to Parliament a new debt ceiling of around 12 trillion shillings,” the former finance minister under former President Moi said.

In December last year, Yattani told the International Monetary Fund (IMF) that Kenya intended to replace a nominal public debt ceiling with a debt anchor as a percentage of gross domestic product (GDP) d by the end of June 2022.

The debt ceiling is currently set at 9 trillion shillings.

“The new framework would center on…a medium-term debt anchor set at 55% of GDP with debt measured in present value terms,” ​​Yattani said in a Dec. 2 letter to the International Monetary Fund.

Kenya Kwanza leaders further affirmed their support for their MPs’ proposal to increase the counties’ equitable shares to 495 billion shillings, which they say represents 35% of the audited and approved national revenue.

“Basically, if these guys were committed to giving more money to the counties, they shouldn’t be opposing these amendments or these proposals,” Mudavadi said.

He further stated the member’s proposal for the provision of 50 billion shillings in support of an affordable credit scheme to support small businesses, noting that businesses in the lower economy directly employ 14.9 million Kenyans. .

Kenya’s Kwanza Alliance allied MPs have proposed an amendment to the provision of an additional 2 billion shillings needed for the devastating effects of the pandemic, deteriorating food security situation and drought mitigation, including including the livestock culling program in the budget.