Treasury Cabinet Secretary John Mbadi has expressed concerns that Kenya’s economy is not on the right path, adding that the government is working on new strategies to revive the economy.

Speaking during a graduation ceremony at Migori Teachers Training College, Mbadi acknowledged that over-borrowing for short-term solutions to fund long-term projects had hindered the country’s economic progress.

Mbadi`s statements however, contradicts President William Ruto’s comments of having a booming economy.

“It is true that our economy is not doing very well. It is largely because at one time we took short-term loans to develop long-term projects,” said Mbadi.

At the same time, the Treasury CS assured the country that he has the capacity to restructure the economic situation.

Mbadi also urged the people from Nyanza region to support President William Ruto’s government, saying he has their interests at heart. 

Meanwhile, Migori County Governor Ochilo Ayacko urged the Cabinet Secretary to consider increasing the budget allocation for the employment and remuneration of teachers across the country.

Ayacko explained that teachers are underpaid, warning that the current economic challenges could further demoralize teachers, ultimately affecting their productivity.

On March 25, the Treasury CS had warned about Kenya’s Fiscal Outlook, saying the country is forced to “look inward” and reduce dependence on foreign aid even as it struggles to get its finances back on track.

This was after heavy domestic and external borrowing, which had resulted in high debt-servicing costs.

“We will be left to look inward, and this is the worst period for Kenya. Some time back, we decided to take loans as a country, and these loans have now reached their peak.”

Kenya is faced with about Ksh.10 trillion in external and domestic debt, as two-thirds of the country’s annual revenue goes to debt servicing.

Written by Rodah Mbatiany, TV47