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Kenya, thinking about the economy after the protests

Ruto announces cuts and loans, and an external controller

06-07-2024 by Freddie del Curatolo

After the protests of the youth and the escalation of violence that the less peaceful and hungrier ones have engaged in with the forces of law and order, Kenya is back to dealing with its economic situation. President William Ruto made important announcements to the national media yesterday: the priorities are to manage the rising public debt (now over 70 billion Euro, or about 70% of the Gross Domestic Product), to cut public spending starting with his government, and to ask for new loans.
The budget cut will be about EUR 1.2 billion, and the difference to arrive at the EUR 2.5 billion needed to run the next fiscal year, the revenue from which would have been guaranteed by the taxes contained in the contested budget that was later withdrawn, will be borrowed.
Regarding the public debt, Ruto announced the appointment of an independent Task Force, headed by Bar Association activist Faith Adhiambo, who was on the streets in the first of the protest days in Nairobi. The Task Force, in Ruto's words, will be tasked with drawing up an audit of the budget figures. "This audit will provide the Kenyan people with clarity on the size and nature of the debt, how public resources have been spent and recommend proposals to manage our public debt in a sustainable manner and with intergenerational equity," the president said.
However, Ruto promised to proceed with the recruitment of middle school teachers and medical residents, fund the milk stabilisation programme for farmers, revive the stalled road programme, maintain the fertiliser subsidy programme, and settle debts with farmers and coffee growers.
William Ruto also announced 'austerity measures' concerning the running of the state, including halving the number of ministerial advisors and funds allocated for restructuring in ministries, including the presidency, and the end of budgetary funds allocated to the First Lady or the wife of the vice-president. There will also be a cabinet reshuffle, starting with a few ministries.
'These measures will be followed by changes in the government,' Ruto confirmed, while not giving details or naming names.
Another day of protest was planned for tomorrow, on the historic date of the protests against the Moi regime, 34 years ago. We will see, after these statements, how the situation will evolve. But an armistice seems the most logical solution for the country and its people.

(Photo: The official site of the president of the Republic of Kenya)

TAGS: economiadebitoprotestegiovani

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