Busia Senator Okiya Omtatah has said that the problem with Kenya's debt is odious debt.
Speaking at the Kenya Conference on Debt and Development on Monday, August 21, Omtatah argued that odius debts is killing the country and laid the blame on the Treasury.
"The problem with Kenya is odious debt and the culprit is the treasury. Odious debt is killing this country not genuine debt. Everything that is afflicting this country was done outside the law," Omtatah stated.
He affirmed that any debt that is secured outside parliament and not in the appropriations act is odious debt and should not be paid by the Kenyan public.
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The Busia Senator argued that we need to make sure the treasury acts within the law adding that it was the only way to get out of the debt quagmire.
At the same time, Jimi Wanjigi echoed Senator Omtatah's sentiments noting that the law on debt is the appropriation bill and that is the genuine debt.
On the other hand, Molo Member of Parliament Kuria Kimani noted that as a parliament they did everything to widen the tax base and ensure own resource mobilization in the Finance Act 2023.
Kimani cited the example of the informal sector which he said contributes 80% of our economy but noted they were not paying their rightful share of taxes hence the increment in turnover tax.
The Legislator also mentioned the introduction of the 5% withholding tax for digital content creators as part of resource mobilization.
"We had the Devolution Conference last week in Eldoret, how much much attention was given to own resource mobilization by the Counties," Kimani posed.
The Kenya Conference on Debt and Development has been organised by the Okoa Uchumi coalition partners to address matters debt in the country.
Fresh data released by the Treasury shows that the Gross debt stock climbed Ksh1.56 trillion ($10.8 billion) for the financial year ended June breaching the Ksh10 trillion ($69.52 billion) mark by Ksh189.53 billion ($1.32 billion).
President William Ruto has insisted that the country will not borrow to finance expenditure stating," We are not going to borrow money to pay salaries."
