Graft and conspicuous consumption at the centre of inflation and debt

Graft and conspicuous consumption at the centre of inflation and debt

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he government has embarked in grandiose consumption in huge projects which do not make sense to wananchi. A demoralised society and an arrogant government with can’t pay won’t pay attitude only breeds economic turmoil and rises poverty levels.

A Twitter grab trending under #Waiguru where Kenyans On Twitter  condemned the rampant sleaze in the Devolution and Planning Ministry

By MUSYOKA NGUI

The rising cost of living occasioned by skyrocketing interest rates and grand corruption in the Jubilee government is worrying.

The opaque transactions that surround Eurobond debt saga and National Youth Service within the government, while no heads seem to roll makes for a disturbing lack of integrity and accountability in management of public funds.

Commercial banks have raised interest rates in response to government raiding local markets to plug yawning budget holes. Small businesses and even established corporates are feeling the cash crunch. As a result businesses are likely to lay off staff and register limited profits.

The government has embarked in grandiose consumption in huge projects which do not make sense to wananchi. Why build a railway next to another one? Does the still born laptop project make economic sense when the teachers are not paid their salaries despite a court order to that effect? A demoralised society and an arrogant government with can’t pay won’t pay attitude only breeds economic turmoil and rises poverty levels.

The populist claim by Deputy President William Ruto that interest rates will come down in 60 days cannot be believed by anyone. Tell me why then did the interest rates climb up even after the much touted Eurobond that was billed as the cure for inflation. Of suspicion is the unconstitutional transactions effected by the government without the approval of Eurobond money by Agnes Odhiambo who is the Controller of Budget.

Counties have not helped matters as they have localised corruption and wastage.  As we approach electioneering period in 2017 the political class seem to be bent on causing political and ethnic hatred by their poisonous tongues. The investors will withhold their disposable incomes when faced with such volatile uncertainties. The result is a depressed economic growth in the remaining term of President Kenyatta.

It does not help matters that constitutional commissions are being subjected to political interference. The Office of Director of Public Prosecutions, Ethics and Anti-Corruption Commission are all fighting off external forces from the Parliament and the Executive.

In order to rescue our country from further crises, leaders should be seen to be in charge. Those cited in corruption investigations should step aside as they await for completion of investigation from courts and the police prosecutors.  The government must live within its means because in the final analysis the taxpayers are the ones hardest hit by inflation.