Ndindi Nyoro | Senegal Debts and Kenyan lessons.

Senegal Debts and Kenyan lessons.
Senegal is currently in turbulence in debt management. Upon assuming office, the current government led by President Diomaye Faye and PM Ousmane Sonko realised that the previous government led by President Macky Sall had borrowed around $13Bn in Secret loans "Off the Book". Meaning the amount was not included in the mainstream Debt book.
We must as a country avoid falling in that kind of an abyss. The National debt in Kenya is now over Ksh 12.5 Trillion. This is the loan book. We are borrowing Ksh 3.5Bn to Ksh4Bn every day. I mean Net borrowing. What is borrowed to pay previous loans not included.
Unfortunately, on top of this and besides the mainstream borrowing, the Government is also for the 1st time borrowing off the Book without transparency. Below has done in the last 5 Months and continues to happen.
1. Securitisation - The government has already borrowed Ksh 175Bn by offering as security fuel levy that is to be collected for the next 7 years. The process is underway for another over 100Bn on the same.
2. Talanta Bond - GoK borrowed through a bond Kah 44.5Bn, offering as security money that is to be collected by Sports Fund for the next 15 years. The interest alone for the Ksh 44.5 Bn loan will be 100Bn after that period.
3. Tourism Fund. The fund is effectively also on the same line and path.
4. Plans are underway to take around Ksh 400Bn loan by offering Housing Levy that is to be collected in the next many years as security. Basically collecting Housing Levy in advance.
5. The National Treasury is also in the process of forming an "Infrastructure Fund" which will is also a vehicle of borrowing more off the book.
This is how it is working - Create a fund, then institute levies, then use the history of the Levy collected to borrow secretly off the book.
This while is illegal also contrains the future flexibility of the country's fiscals or funds.
All these Funds and institutions are fully owned by GoK. You cannot therefore treat loans taken by any of the government institution differently, especially non commercial institutions. If the institutions are unable to pay, GoK will pay. That's why w e must not do these kinds of implementation.
It is important that Kenyans know this. Ramifications will definitely come. I hope sanity reigns and we avert a catastrophe by acting differently.
We are African and Africa is our Business..