The stark assessment serves as a clarion call, bringing attention to the severe repercussions of years of fiscal mismanagement and imprudent borrowing.
Today Kenya finds itself ensnared in the grips of a staggering public debt, soaring to an estimated Kshs 9.8 trillion (US$75.7 billion) — a disconcerting 60% of the nation's GDP.
This alarming level, by international standards, has triggered a red flag, indicating a financial predicament that teeters on the edge of sustainability.
The weight of this debt burden is palpable, diverting crucial resources away from imperative social services and infrastructure development.
Compounding the issue is the escalating cost of servicing this towering debt. Projections indicate that interest payments on Kenya's external debt alone are poised to devour over Kshs 300 billion (US$2.3 billion) in the current fiscal year, equivalent to a substantial 2.5% of the GDP.
This financial hemorrhage severely curtails the government's capacity to invest in vital sectors such as healthcare, education, and infrastructure.
This financial hemorrhage severely curtails the government's capacity to invest in vital sectors such as healthcare, education, and infrastructure.
Gachagua's cautionary note about a potential government shutdown is not to be dismissed lightly. The government's ability to fulfill its financial obligations, including salary payments and the sustenance of essential services, is hanging precariously in the balance.
Without prompt and decisive action to address the burgeoning debt crisis, the country faces the grim prospect of dysfunctionality, heralding widespread disruption and enduring hardship for Kenyans.