The economic advisor for president William Ruto David Ndii has come out to explain to Kenyans about the term public finance and how it has affected the country amidst claims that we are going broke
Taking to his Twitter page, Ndii has said that to pay up the debts, Kenya is using the 60% plus of revenue collected so as to settle it.
He claimed that due to this factor, the liquidity of the country breaks down with time and that when the debts mature then the revenue collected falls short and markets also shifts. Hence due to this one has to choose between defaulting of the loan payments or failing to pay the salaries thus the government chose the later.
“Is public finance that difficult? Its reported every other day debt service is consuming 60%+ of revenue. Liquidity crunches come with territory. When maturities bunch up, or revenue falls short, or markets shift, something has to give. Salaries or default? Take your pick,” he said.