Concerns over fiscal responsibility are mounting following the current signing of Ksh. 1.6 trillion in borrowings by Treasury Cabinet Secretary John Mbadi.
Businessman and political figure Jimmy Wanjigi has raised alarm over the decision, questioning the legality of the borrowings, especially since only a portion of these loans had been approved by Parliament.
Wanjigi, known for his sharp critiques on government financial practices, labeled the unapproved funds as “odious,” stressing the need for urgent action to address potential breaches in the country’s budgetary framework.
His remarks point to a growing unease over whether the government is operating within the legal confines of the fiscal budget passed by Parliament. According to Wanjigi, the apparent disregard for Parliamentary approval shows serious flaws in the government’s approach to borrowing and managing public debt.
The Ksh. 1.6 trillion loan represents a significant addition to Kenya’s already ballooning national debt, which has been a point of contention both in Parliament and among financial analysts.
With the country’s debt-to-GDP ratio continuing to rise, critics like Wanjigi argue that reckless borrowing could have dire long-term consequences on the economy, putting more strain on taxpayers and potentially pushing the country into a debt trap.
The legality of the unapproved borrowings has now become a focal point of debate, with calls for more transparency and accountability in the loan acquisition process. Parliament is expected to demand explanations from the Treasury, especially regarding the purpose and allocation of the unapproved funds.
Wanjigi’s statement adds to a chorus of voices calling for stricter fiscal discipline and adherence to the laws governing government borrowing. As pressure mounts, the Treasury will likely face greater scrutiny from both lawmakers and the public in the coming weeks.
By Newshub