Kenya: I will reduce the appetite for the debt by widening the tax base – President Ruto

NAIROBI – President William Ruto urged the Kenyans to pay taxes to allow the government to fulfill its mandate so that Kenya is an independent nation.

The Head of State during a Grace Action Service in the district of Kitui Central said that it would be the viable solution to guide the development of the country without depending on the external debts.

“The only way we really can be an independent nation is to be able to support our development with our own resources,” said Ruto.

President Ruto mentioned that his regime was trying to resolve the huge debt crisis due to the growing debt of the country which is currently 8.2 billions of shillings.

He revealed that the government focuses on the financing of development projects using taxes, stressing that the government is currently paying more than 1,000 billion shillings to reimburse the huge loans currently.

“We have to stop the tendency to borrow from other countries and we are starting to search for our own income. It is possible by increasing our tax revenue compared to the current Shillings Billion,” he said.

“I will head from the front to make sure that Kenya is withdrawn from the current state of the debt.”

The Head of State said that the nation will not be enslaved to debts by a foreign nation if tax collection is increased to generate additional income.

“The Bible says that the borrower is the lender’s slave. We do not want our nation to be indebted,” said President Ruto.

This occurs a few days after the Treasury CS Ukur Yatani, said the country had never been lacking in one of its creditors after details revealed that Chinese banks had inflicted a fine of $ 11 million in the country for not having reimbursed the loans used to finance a large railway.

The government had borrowed $ 4 billion to build the standard track rail from the port of Mombasa to the city of Naivasha.

In current statistics, China represents a third of Kenya’s external debt.

The Kenya debt register at the end of last year shows that the raw public debt has crossed the 8,000 billion shillings mark to be 8,200 billion shillings against the nominal GDP of the country estimated at 10 700 billion shillings.

This means that for each SH10 won thanks to the sale of goods and services in the country, SH7 covers loans, illustrating the high level of debt of Kenya.

The burden of the external debt has worsened due to the persistent decline in the value of Kenyan shilling and the economic crisis which followed the restrictions of COVVI-19.

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