Govt spending, corruption to blame for cash crunch Raila

Cord leader Raila Odinga has accused the Jubilee Government of putting the country in a financial crisis by spending more than it can afford, borrowing too much and corruption.

Speaking at a news conference, Odinga said the opposition stands ready to support measures that put Kenya where it belongs and restore the economy.

“Jubilee is over borrowing, over spending and over stealing”, said Mr Odinga.

He further accused the Jubilee Administration of living beyond its means, adding that Kenya’s economy is underperforming.

“The truth is that our economy is underperforming while other nations in the continent are growing,” said Odinga.

He noted that Treasury Cabinet Secretary Henry Rotich had recently acknowledged that the country was facing a cash crunch.

“Jubilee told people that the economy was doing well yet we have increased debt and borrowing to five times more than when the grand coalition was in power,” stated Odinga.

“At 5.2 per cent, our economy is at number four in East Africa,” he stated.

“Soon, it will be a myth that we are the best economy. These are facts.”

Odinga also noted that the country’s financial sector is also troubled, pointing at the recent collapse of Imperial Bank after the Central Bank of Kenya (CBK) placed it under receivership over what it termed as unsound and unsafe business conditions.

“Things are bad at the Nairobi Stock Exchange,” Odinga said, adding that the NSE lost Sh60 billion in one month.

He added that the market value has shrunk and foreign debt has overtaken domestic debt.

“We now spend 110 per cent, up from 4 per cent, to service foreign debt,” said Odinga.

“The government now wants to borrow outside so local banks can be serviced. Interest rates are at their highest and nobody is talking about the Euro Bond. You would be a fool to borrow at those rates,” quipped the Cord leader.

Odinga said that President Uhuru Kenyatta should provide Kenyans with a better cause and credible system to ensure their bank savings remain safe.

“Mr President you should show Kenyans that you care. Think of the thousands of suppliers who cannot make ends meet and even resort to suicide,” said Raila, adding that Cord demands stability for the Kenyan shilling.