Cabinet Secretary (CS) for the National Treasury and Economic Planning, John Mbadi has asked Kenyans especially Generation Z, to join hands with the government by supporting its plan to revamp the economy that he said is ailing.
CS Mbadi said the economy has been resilient, asking Kenyans to be patient but at the same time support the government as it needs to fix the situation as soon as possible which could not be done single-handedly.
Speaking during a public engagement forum with the youths and Bunge la Wananchi in Mombasa County at Swahili Port Hub, Mbadi said the economy needs a 7 percent growth to create more jobs in the country as it is now at 4.6 percent.
He said in 2023, the economy was at 5.7 percent but now it’s at 4.6 percent, a noticeable decline.
He noted that the country’s inflation rate is managed at 3.5 percent, to which he attributed the decline in investment in agriculture and favourable weather.
He added that the cost of electricity has slightly come down and the country’s reserves were good to cover at least 4 to 7 months of imports.
“Budget process starts around September every year. I want to ask all Kenyan Gen Zs to engage the government by asking questions where they don’t understand and I will avail myself personally to respond. The government will now come and talk to you before we make decisions that affect each one of you in high-rise buildings in Nairobi,” he said.
He added that all budget processes are anchored on a vision that is guided by the ruling government’s manifesto whereby its main goal is to make Kenya a middle-income nation and not a low-income country.
He asserted that the budget is done in line with the Bottom Up Economic Transformation Agenda (BETA) pillars which include the agricultural transformation, micro, small and medium-enterprise economies, healthcare, housing and settlement and the digital superhighway and the creative industry.
CS Mbadi said that the country’s debt level had reached a point where it was unsustainable but the government took charge and saved the situation.
He however said there were still outstanding debt balances that needed to be cleared making it obvious to the youths that taxing Kenyans into clearing debts would not work as it didn’t turn out well in the recent Finance Bill 2024.
“The government owes a total of Sh11.02 trillion, with Sh5.83 trillion being domestic debt and Sh5.19 trillion as external debt. The other Sh2.83 trillion is multilateral debt while Sh1.089 trillion is bilateral debt and Sh1.17 trillion is commercial borrowing. These were loans taken in the past years from 2017 to 2019,” said Mbadi.
He noted that debts have been piling up since around 2014, thus calling for serious interventions from the public to fix the situation.
He added that before the Finance Bill 2025 is published, the government will have a conversation in all 47 counties to discuss it, whereby Kenyans will have a physical sitting to lay down their concerns with the Treasury CS before the bill is taken to Parliament.
Mbadi urged Kenyans to take advantage of the consultation window and share their views as the government is now keen on ensuring it improves on tax administration in regards to safeguarding public interests.
“The government has made several efforts to stimulate economic growth and enhance the financial well-being of Kenyans through key fiscal and economic policies,” he said.
By Chari Suche
