MP Advocates for Public Debt Register to Monitor Government Borrowing

Mukurwe-ini MP John Kaguchia has proposed the establishment of a public debt register as a measure to regulate government borrowing in Kenya. This suggestion comes in response to media reports highlighting the country’s increasing debt burden.

According to Kenya News Agency, a checklist system is necessary to evaluate the necessity and value of funds borrowed by the government. He believes that such a system would prevent unnecessary borrowing and investment in nonviable projects.

Kaguchia emphasized the significance of transparency and accountability in government borrowing, stating that public knowledge of the details of the debts, including the purpose, conditions, costs, repayment periods, and their impact on the economy, is crucial. He pointed out past instances where borrowed funds were allocated to projects that failed to generate returns. The MP insists that borrowing should only occur if it positively contributes to the economy.

During his appearance on the Citizen’s breakfast show, Kaguchia defended the current government’s fiscal policy and management of public debt. He refuted claims of poor performance, asserting that President Dr. William Ruto is actively addressing the debt issues inherited from his predecessor, Uhuru Kenyatta. Kaguchia also challenged the accuracy of reports stating that the government inherited a debt of Sh8.7 trillion, arguing that this figure fails to account for subsidies provided to the public for fuel and maize flour costs.

The lawmaker referred to a local daily’s report claiming the public debt increased from Sh8.7 trillion to Sh10.58 trillion since September, marking a 386 percent rise. He argued that this figure does not reflect debts maturing from the previous regime and the necessity for new loans to meet these obligations.

On the topic of taxation, Kaguchia advocated for a focus on internally sourced revenue over external loans as a solution to the country’s debt challenges. He drew parallels between President Ruto’s taxation approach and the strategy employed by the late President Mwai Kibaki in 2003, commending Ruto’s efforts to manage the economy primarily through domestic resources and reducing reliance on excessive borrowing.