Consumer Federation of Kenya (Cofek), a group representing Kenya's consumers on Wednesday, called upon President Uhuru Kenyatta to declare the rising debt a national disaster.
In a statement, Cofek Secretary General Stephen Mutoro expressed concern over the country's rising public debt stating that it had gruesomely affected the economy.
Mr Mutoro noted that the debt had surpassed the globally accepted 50 percent of the country's Gross Domestic Product (GDP) by six percent.
“It’s no doubt that this rising levels of public debt will lead to the shrinking and the drying up of major Foreign Direct Investments (FDIs) and occasion massive job cuts,” Mutoro noted.
[caption caption="COFEK boss Stephen Mutoro (Twitter)"]
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He stated that country had an accumulated debt of more than Sh4 Million by 2017 adding that national revenue is financing debts in the current fiscal year.
“The government has borrowed Sh200 Billion of another Eurobond and ignored warnings by the International Monetary Fund (IMF), the World Bank and the Moody’s Credit Rating Agency. This unacceptable,” he conveyed.
In effect, the Cofek boss noted that the organisation would petition both National Assembly and the Senate to demand an explanation from the National Treasury.
"National Treasury should make public the extent and detail of total public debt, its’ utilization, servicing and progress and duration of clearing such debt,” he noted.
He also asked the Budgets and Appropriations Committee of Parliament to put up measures to ensure money have a long-lasting impact to the growth of the economy.
[caption caption="COFEK Stephen Mutoro (Facebook)"]
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"Government must stop over-borrowing on the domestic money market as it will escalate the twin challenge of rising cost of credit,” Mutoro asserted.
The body also wants the committee to also outlaw supplementary budgets to ensure the Government lives within its means.
