Why Kenya should default on debts: Jimi Wanjigi

May 17, 2023

Jimi Wanjigi opines that Kenya should default on its loans, saying it is the only solution to the rising costs of giving that Kenyans are currently experiencing.

Kenya’s gross public debt hit Ksh8.8 trillion by the end of March, with President William Ruto’s administration borrowing Ksh17.4 billion more than his predecessor in its first six months in office.

Wanjigi now says the government has exhausted all its options and it should consider defaulting on loans.

“We look at defaulting as a bad thing, yes it is but what the country will get from defaulting is a breathing space which the country needs. We have Sh1.7 trillion in debts and a cumulative interest of Sh719 billion to be paid,” he reasoned on Tuesday.

The businessman argued that increasing taxes will only continue to burden Kenyans.

“If we agree to default and that money is removed from expenditure, Kenyans will experience relief,” said Wanjigi during an interview on Spice FM.

Wanjigi suggested that by negotiating terms with the International Monetary Fund (IMF), the government can save the economy.

“We can forcibly negotiate our debts like Ghana did. Show those that we owe a plan on how we can grow our economy, and ask them to give us time. If that money is invested in production, then we might be able to save our economy in three years,” he said.

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