Controversial political analyst Mutahi Ngunyi has weighed in on the recent debate on the country’s debt crisis.
Ngunyi has slammed Kenyans for petitioning to have the International Monetary Fund (IMF) cancel the Sh255 billion loan it had approved earlier in the week to aid in the Covid-19 response adding that they are borrowing way more.
Taking to Twitter, Ngunyi intimated that by the end of 2022, Kenyans will have borrowed twice the amount that IMF has loaned the country hence called on people to stop the hypocrisy.
“By Christmas, Kenyans will have borrowed twice what IMF is loaning us. And they will have borrowed it from only ONE SOURCE: Fuliza. If you ADD Saccos, shylocks, MFIs, and Chamas (Forget BANKS) they will have BORROWED Trillions. Are THEY Stupid? NO. They KNOW that BORROWING is good,” Ngunyi tweeted.
By Christmas, Kenyans will have BORROWED twice what IMF is loaning us. And they will have borrowed it from only ONE SOURCE:Fuliza. If you ADD Saccos, shylocks, MFIs, and Chamas (Forget BANKS) they will have BORROWED Trillions. Are THEY Stupid? NO. They KNOW that BORROWING is good
— Mutahi Ngunyi (@MutahiNgunyi) April 7, 2021
This comes as a section of Kenyans have taken to Twitter castigating the government, more so the Jubilee administration for its insatiable appetite for loans that have since plunged the country into debt.
According to the 2021 Budget Policy Statement, Kenya’s public debt as of June 2020 stood at Sh7. 06 trillion, equivalent to 65 percent of GDP.
Also, the NCBA financial report released on Monday last week revealed that Kenyans took a total of Sh432 billion Mshwari and Fuliza loans, averaging Sh1.18 billion every day. The total figure increased 30 percent from Sh330 billion in 2019.
Further analysis by the Communication Authority also revealed that Kenyans borrowed an average of Sh967 million from Safaricom’s overdraft facility Fuliza in a six-month period ending on June 31, 2020.
For the better part of last week, Kenyans took to IMF Facebook page to rant and urge them to cancel the Sh255 billion loan that had since been approved claiming that it will be mismanaged and end up in the pockets of a few individuals.
The conversation has now been trending on Twitter under the hashtag #stoploaningkenya with a petition signed by over 100,000 Kenyans demanding the loan cancellation.
Addressing the same on Monday, Treasury CS Ukur Yatani said the loan will come in handy to aid in the country’s Covid-19 response and the economic recovery.
Yatani further revealed that without the support of IMF, the country would have had to cut spending on investment and social programs.
“Equitable and affordable access to the vaccine is critical and help from the international community are urgently required,” Yatani was quoted by the Star.
He added, “This will help provide employment opportunities, close the digital divide, enable social safety nets to better reach the most vulnerable, and address the climate challenges buffeting the region.”
The conversation has since thrown social media into a frenzy with people airing mixed reactions. For instance, a section wants the IMF to act on their petition and cancel the loan while others are calling for government accountability and election of good leadership.
Here are some reactions from Twitter:
— Ngari's Daughter. (@Marion_Ngari) April 7, 2021
The OUTARAGE directed at IMF is TOTALLY MISPLACED! It is a classical illustration of collective ignorance! #IMFStopLoaningKenya
— Lord Abraham Mutai (@ItsMutai) April 7, 2021
GOVERNOR JAKAKIMBA will NOT sign the #IMFStopLoaningKenya online Petition: we must first agree on First Things FIRST & be honest with each other- learn to interrogate ALL leaders beforehand. Stop using your tribal masks to vote, then turn around to 'complain' on Twitter. STOP it!
— Silas Chepkeres Jakakimba (@silasjakakimba) April 6, 2021
— #NobodyCanStopReggae (@NdungiGithuku) April 6, 2021
This is Kenyans to #IMFloan before understanding the loan, do you know the #ImpactOfTheLoans ? Why sign the petition ? It has only 300 signs,check herehttps://t.me/joinchat/TMykepAXFmfGfZCZ#Samidoh #ThiefOfTheLoans #IMFStopLoaningKenya Samia Suluhu pic.twitter.com/V6v4pVpal8
— Hon. Junet Mohammed CBS (@Junet_Mohammed) April 6, 2021
The president compares our GDP to Japan when some places in the capital city have unmaintained and unpaved roads.
Mr. President, If our debt was supporting country wide access to all public amenities instead of looting 2B per day we'd support your actions. #IMFStopLoaningKenya https://t.co/j7P4UEeQnK
— Njoki Kimani_Pank (@Paulinekimani_N) April 6, 2021
— CARSON BRIAN🦅 (@carsonbrian_KE) April 7, 2021