Kenya’s Path to Financial Stability: Curbing Corruption and Restructuring Governance
Kenya’s Treasury Secretary John Mbadi asserts that reducing corruption by half could enable the country to settle its external debts. He emphasized the need for e-procurement to curb significant financial losses. Furthermore, he criticized the current devolved governance structure and proposed a reduction in the number of counties for better efficiency, pointing to the substantial national wage bill as a barrier to development.
According to Treasury Cabinet Secretary John Mbadi, Kenya could adequately address its external debt if corruption is reduced by fifty percent. He expressed this during a discussion on President William Ruto’s fiscal strategy aimed at enhancing government revenue and minimizing excessive expenditures. A major concern highlighted is public procurement, identified as a significant contributor to financial losses within the government.
Mbadi emphasized that implementing e-procurement could help combat the alarming loss of approximately Sh2 billion per day due to corruption. He estimated that reducing theft by fifty percent could save Sh365 billion annually, a considerable amount surpassing the Sh280 billion external debt due by 2025.
Additionally, Mbadi argued that if inefficiencies in governance can be curbed, the country may not need to seek new external loans. He indicated that savings from reduced corruption could cover external debt obligations, as the projected savings are significantly higher than the amounts owed.
Moving beyond corruption, Mbadi criticized the current structure of Kenya’s devolution, asserting that the existing 47 counties are financially untenable. He proposed a return to a fewer number of provinces, advocating for a maximum of 14 regions, to streamline governance and reduce administrative costs.
He pointed out that the current system results in unnecessary bureaucratic layers that drain public resources. The proliferation of government roles at the county level adds to the wage bill, which is already under pressure. His perspective raises a critical question about the sustainability and efficiency of Kenya’s governmental framework.
Furthermore, the national wage bill is reported to be Sh80 billion per month, equating to nearly Sh1 trillion per year, which hinders development activities due to other commitments such as loan repayments. Mbadi’s analysis has triggered discussions regarding the urgent need to reassess Kenya’s governance structure to ensure both efficiency and cost-effectiveness in service delivery.
In conclusion, the potential for Kenya to meet its external debt obligations hinges significantly on the reduction of corruption within government operations. Treasury Secretary John Mbadi’s insights offer a compelling case for reevaluating the current governance structure and the size of devolved units. By streamlining these operations and reducing bureaucratic inefficiencies, Kenya could enhance its financial stability and redirect resources towards development rather than debt repayment.
Original Source: www.capitalfm.co.ke
