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State cooked books and lied about big debt, Moses Kuria reveals

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Gatundu South MP Moses Kuria has claimed that the Government cooked books and cheated Kenyans on the state of the economy and debt levels.

This, Mr Kuria said, has subjected millions of Kenyans to untold suffering.In the starkest admission by the Jubilee MP that Kenyans are on their own, Kuria claimed the Government has been lying to Kenyans on various issues, among them the debt situation and the state of the economy.He said President Uhuru Kenyatta’s administration has committed ‘treason’ against Kenyans, which, in effect, means it has betrayed the trust of those it is supposed to serve.

“For seven years, we have cheated about our debt, we have cooked books, we have cheated people that we do zero-based budgeting. We have taken loans at 9 per cent that left people offering us money at one per cent. That to me is treason…” said the MP.

Kuria was speaking on Citizen TV’s Day Break show on Tuesday morning.He singled out Parliament as having failed in its oversight role, in effect giving the Executive a free ride to ramp up an unsustainable amount of debt.

The MP, who is also a member of the House Budget Committee, wants both the Executive and Parliament to apologise for being willing accomplices to acts of omission and commission that have brought the country to its knees.

“I want people in the Executive to offer an apology. Ours is an error of omission. Theirs is an error of commission because for seven years we have cheated this country about our deficit…“As Parliament, we have failed Kenyans because we have sold to them the romantic story that all is well. We failed in our oversight role because we could have said no, but we said yes, selling lies that all was well because we believed in respecting the Executive, and most of us are members of the ruling party. We have lied to Kenyans…We are doing badly as an economy,” Kuria said.

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He wants former Treasury Cabinet Secretary Henry Rotich and former Principal Secretary Kamau Thugge to look Kenyans in the eye and admit that they failed them.“I want my friends Rotich and Thugge to look Kenyans in the eye and tell them that they have committed treason,” he said.

Kuria said Kenya chose to take expensive loans because lenders such as the World Bank, whose loans are affordable, have no room for corruption.

Burn in hell

“Because institutions like the World Bank, African Development Bank and other multilateral lenders have no opportunities for kickbacks, we refuse their money and go for 9 per cent and 10 per cent. Tell me whether these people will not burn in hell?”Two weeks ago, Parliament raised the country’s debt ceiling to Sh9 trillion, giving the Government a blank cheque to burden Kenyans with more debt.

In the financial year ending June 2019, for every Sh100 that the country earned from taxes, non-tax revenues and grants, Sh57 went into servicing debt.

This compares to only Sh25 Treasury paid six years ago.The cash-strapped Exchequer has been forced to suspend some development projects and do away with non-essential spending such as tea, advertisements and travelling, so as not to be at odds with its creditors.And it has stopped being so cocky about the sustainability of the country’s debt, which has risen to Sh6 trillion as at August — or 63 per cent — assuming a gross domestic product (GDP) of Sh9.5 trillion.

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The upper limit is 70 per cent. Debt as a fraction of GDP has increased from 42.1 per cent in June 2013. Generally, the higher the country’s debt-to-GDP ratio, the higher the risk of defaulting.

It is even worse when most of the debts are in foreign currencies.That is why starting last year, Treasury began to acknowledge the need to reverse the voracious uptake of expensive external loans lest it tips over the financial cliff. In its recent public debt management reports, Treasury has admitted that things have hardened for Kenya.

The Government says it is trying to restructure its debt by lengthening the average maturity time of its loans. It has, however, had problems restructuring its loans, with investors still preferring short-term government papers.

During the show, Kiambu MP Jude Njomo, suggested that the country could become ‘ungovernable’ as a result of creating a small club of the rich while the majority of Kenyans languish in poverty.“We only have a small crop of people at the top who are making money while those at the bottom are not. I think this county can become ungovernable,” said Mr Njomo, also a Jubilee lawmaker.

They spoke on a day the Government pushed through Parliament changes that will subject Kenyans to more expensive loans by removing the interest rates cap.While the Government has been arguing that the cap had forced it to borrow from the domestic market, Kuria alleged that the Jubilee government has been borrowing from itself.He said some parastatals had kept money in banks, hoping to make a kill from savings.

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He revealed that Rotich’s successor at Treasury, Ukur Yatani, had discovered Sh70 billion that was stashed away in the banks by parastatals.“Since Ukur Yatani took over the National Treasury we have recovered more than Sh70 billion that was stored in banks. Money from the Communication Authority and the Kenya Ports Authority were all stored in banks, and the same government borrows that money then we tell the public we are over-borrowing domestic loans. That is fraud,” he said.

Economist Kwame Owino said young people could not access credit as it was too expensive. “It is evident that interest rates are too high and therefore it constrains the ability of small people to borrow money and use that for productive enterprise,” he said.

While the State insists that the reason is due to the country’s upgrade into a lower-middle-income country, which saw the flow of cheap loans reserved for poor countries stop coming, fiscal indiscipline is also to blame.“The maturity and grace period has shortened while average interest rates have risen, reflecting the rise in loans contracted on commercial rates in the external debt portfolio,” said Treasury in the annual public debt management for Financial Year 2018/19.

Expensive dollar-denominated sovereign bonds, Eurobonds, and loans from commercial banks have pushed up the share of the country’s commercial debt, plunging the nation into new risk frontiers.

By standard media.co.ke

1 Comment

1 Comment

  1. Daniel

    November 6, 2019 at 4:31 am

    Kenyans did not need this Government to say the least , Kibaki administration left the stores fully loaded after off setting much of the dept that Moi placed on Kenyans, However Jubilee came in and Jubilated what was in store.They liked the taste of money and started borrowing like there is no tomorrow.This has made Kenya to be deeply indepted to a point of no return, this is unacceptable and this government need to go out like yesterday period

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How Shabaab is recruiting in Kenya

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Three Kenyans and two Somalis linked to the Dadaab refugee camp in northeastern Garissa County carried out the January attack claimed by Al-Shabaab on the DusitD2 hotel complex in Nairobi, according to United Nations experts.

A fourth Kenyan citizen based in Mandera County served as “a key financing link between al-Shabaab in Somalia and the attacking cell in Kenya,” adds a report by the UN experts released on November 12.

The findings lend some substance to Shabaab’s claim in June that it has recruited “an army of fighters from the Kenyan population itself.”

The Dusit attack also highlights what the UN experts describe as “a newly observed dimension of al-Shabaab’s recruitment strategy.”

“The possession of criminal skills, including knowledge of evading law enforcement, are privileged over ideology or affiliation with certain mosques or religious networks,” report says.

Ali Salim Gichunge, born in Isiolo in 1995, is named as the organiser and coordinator of the Dusit attack which left 26 people dead, including a suicide bomber and four gunmen.

“Unusually for a Kenyan operative within al-Shabaab,” the report notes, “Gichunge was given wide discretion and autonomy over the particulars of the plot — including the selection of the target — rather than being directly overseen from within Somalia.”

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Gichunge and his wife, Violet Wanjiru, established a safe house in the Guango Estate, Muchatha, on the outskirts of Nairobi about nine months prior to the attack, the report finds.

Another Kenyan national, Osman Ibrahim Gedi, served as Gichunge’s lieutenant, the experts say.

The assault on the Dusit complex began at 3.28pm East African time on January 15 when a third Kenyan, Mombasa-born Mahir Khalid Riziki, detonated a suicide bomb, the report recounts.

Siyat Omar Abdi, a Somali born in the Dadaab refugee complex in 1992, was among the gunmen who stormed the hotel.

The UN experts say they obtained a Dadaab identification and ration card number attributed to Abdi through his fingerprint. But officials with the UN refugee programme in Dadaab say there is no record of Abdi in their databases, the report notes.

A fifth member of Shabaab’s Dusit attack unit has not been identified but is presumed to be of Somali origin, the report adds. This individual activated a new Kenyan mobile phone in Dadaab’s Dagahaley camp on December 15, 2018, according to the UN panel of experts.

Also implicated in the Dusit attack is Abdi Ali Mohamed, a Kenyan national based in Mandera. He used three phone numbers to transmit almost Sh70,000 to Shabaab cell leader Gichunge via M-Pesa, the report states.

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“A conservative estimate of the total cost of the DusitD2 operation was between $45,000 and $50,000 (Sh4 million and Sh5 million),” the experts suggest.

Riziki, the suicide bomber, was recruited in 2014 by Ramadhan Hamisi Kufungwa, described in the report as “a well-known Kenyan Al-Shabaab recruiter now located in Somalia.”

The recruitment was centred on the Musa Mosque in Mombasa, which the experts say “has long been associated with radicalisation, recruitment for al-Shabaab, and religious violence.”

by nation.co.ke

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Revealed: Mama Ngina Kenyatta’s State salary

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Former First Lady Mama Ngina Kenyatta has been receiving a monthly pay in excess of half a million shillings from the government amid legal debate on whether she is entitled to the payments.

Official documents from the Presidency indicate that Mrs Kenyatta receives Sh568, 218 monthly at taxpayers’ expense for being the spouse of Kenya’s first president, Mzee Jomo Kenyatta, who died in 1978. Treasury officials say the payment is tied to the law that provides for a spouse of a sitting or retired president to be paid 40 percent of the current salary paid to the sitting head of state should their husband die.

But some lawyers reckon that the payment is not consistent with the Presidential Retirement Benefits Act, which took effect in January 2003.

“Ideally, this law cannot be applied retrospectively. Mrs Kenyatta, while

deserving State pension or gratuity, is not entitled to a government pay when the Act is applied strictly,” said a lawyer who requested anonymity because he did not want to be seen discussing the first family in public.

Mrs Kenyatta started receiving the payment before her son, Uhuru Kenyatta, became President in 2013, officials at the Presidency say.

At 40 percent of the sitting president’s salary, Mrs Kenyatta is in line for a Sh577, 500 monthly pay.

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“Spouse benefits upon the death of a serving President or of a retired President who is in receipt of or who is entitled to a pension under this Act, his surviving spouse shall be entitled to benefits amounting to fifty percent of such pension,” says the Presidential Retirement Benefits Act.

The monthly pension of retired presidents– Mwai Kibaki and Daniel arap Moi—is set at 80 percent of the current salary paid to the sitting President besides other perks like fuel, house and entertainment allowances.

This places their monthly pension at Sh1.15 million compared to the Sh1.44 million that Mr Kenyatta earns every month.

The monthly payment of Mrs Kenyatta, 86, has placed the former First Lady in a small and exclusive club that includes former top public officials who set back taxpayers more than half a million shillings every month to keep them comfortable in retirement.

This includes former Vice-President Moody Awori and retired Parliament Speakers — Kenneth Marende, Francis ole Kaparo and Ekwee Ethuro — who are paid hundreds of thousands monthly besides juicy perks like fuel and medical allowance and tens of aides paid by the State.

The Treasury has set aside Sh1.5 billion in the current financial year ending June to cater for the retirement benefits of the privileged former State officials in a package that will also include the pay and perks of former Prime Minister Raila Odinga and former Vice-Presidents Kalonzo Musyoka and Musalia Mudavadi.

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This underlines the taxpayers burden of keeping former State officials comfortable in retirement.

The lavish package has also come under heavy criticism on grounds that some of the retired ‘State officials left office as rich men with property worth billions of shillings and vast business interests.

As the matriarch in charge of the Kenyatta family’s vast business empire, Mama Ngina presides over an enterprise that is associated with wellknown commercial brands and blue chip companies.

Nigeria-based financial magazine, Ventures, in 2013 estimated the Kenyatta family fortune, including thousands of acres of land and commercial buildings to be worth $1 billion (Sh100 billion).

But the full extent of the business dynasty, however, is still a closely guarded secret known only to the family, top lawyers and the elite investors with whom they do business.

The Kenyatta family owned a significant stake in Commercial Bank of Africa (CBA), which recently merged with the listed NIC Bank, to form NCBA Group—which is listed at the Nairobi Securities Exchange (NSE).

The Kenyattas control about 13.2 percent of the new entity, valuing their stake at Sh6.43 billion based on the bank’s market valuation of Sh48.68 billion at close of trading yesterday.

Others investments are Brookside Dairy—where the President’s younger brother, Muhoho Kenyatta, sits as executive chairman, and the upmarket and chic hotel chain, Heritage Hotels East Africa.

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The family is also linked to Media Max Company, which owns K24 TV, Kameme Radio and The People Daily newspaper.

It also owns thousands of acres of prime land across Kenya that was acquired by the late President Kenyatta in the ‘60s and ‘70s under a settlement transfer fund scheme that allowed government officials to acquire land from the British.

By BD

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Two students killed in US school shooting

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A second student has been confirmed dead following a shooting at a high school near Los Angeles on Thursday, the county sheriff said.

The deaths were confirmed after a boy opened fire on his 16th birthday at Saugus High School in Santa Clarita, 40 miles (65 kilometers) north of Los Angeles.

“I’m saddened to report that we have confirmed a total of two fatalities this morning. One female and one male,” tweeted Los Angeles County Sheriff Alex Villanueva

Three other students were wounded before the suspect shot himself in the head. He is described in US media as being in a “grave” condition.

by nation

READ ALSO:   Moses Kuria throws cheeky jibe at Mariga after Kibra defeat
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