Ruto Spills the Beans on What Uhuru Did to Him

President William Ruto has squarely confronted Kenya’s formidable debt challenge, emphasizing it as a primary hurdle inherited from former President Uhuru Kenyatta’s administration.

Addressing Jubilee leaders at State House Nakuru, the Head of State revealed that a substantial 70% of government revenue, specifically Ksh7 out of every Ksh10 collected, is currently allocated to servicing debts incurred under the previous leadership.

Undeterred by the intricacies of this fiscal dilemma, President Ruto expressed a steadfast commitment to reshaping the debt-to-development ratio, even while acknowledging potential tough consequences.

His vision involves redirecting financial resources towards salaries, county governments, and national development, ultimately aiming to reverse the current financial predicament.

“The only problem is debt, and that is what has been the biggest headache for the last year. If for every Ksh10 collected, Ksh7 goes towards debt, then there is a problem. My intention is to flip it,” asserted President Ruto.

Taking inspiration from former President Mwai Kibaki’s successful strategy, Ruto highlighted the efficacy of tax collection.

He pointed to Kibaki’s decision to adopt the Value Added Tax (VAT) approach, which propelled revenue from Ksh200 billion to Ksh1 trillion during his tenure. Ruto affirmed that effective tax measures remain the key solution to reducing the inherited debt burden.

“People only want to be clapped for when they are elected. We have to change this country, and those opposing us will be the first to clap for us,” declared President Ruto, underscoring the transformative journey ahead.

Kenya’s current debt portfolio exceeds Ksh10 trillion, with major lenders including multinational institutions like the World Bank, the International Monetary Fund (IMF), and countries such as China.

With the Eurobond set to mature in the coming months, President Ruto disclosed the country’s obligation to pay Ksh500 billion between December 2023 and January, adding urgency to the fiscal challenge.

Under pressure from creditors, the government has recalibrated fiscal policies, introducing measures such as the 1.5 per cent Housing Levy and a 2.75 per cent health insurance salary/income deductions to boost revenue.

As Kenya navigates these financial challenges inherited from the previous administration, President Ruto’s commitment to fiscal transformation remains a focal point in steering the country towards a more balanced and prosperous future.