Nominated MP John Mbadi has pledged to make the full details of Kenya’s public debt transparent if he is confirmed as the next Cabinet Secretary for National Treasury and Planning. During his vetting by the National Assembly’s Appointments Committee, Mr. Mbadi emphasized that Kenyans deserve to know the specifics of the country’s debt, including creditors and amounts owed.
“If Kenyans owe people money, why can’t people know and how much because it is not the government or the treasury that owes them, it is the people of Kenya,” said Mr. Mbadi.
Mr. Mbadi highlighted that the government’s borrowing practices have historically been shrouded in secrecy, leading to widespread public concern about the exact amount of debt. He questioned the existence of secret agreements preventing transparency and assured the vetting panel of his commitment to disclose debt details.
“Which are these secret agreements stopping us from knowing who we owe money to? Kenyans should know who they owe and at what rate. I will make this public,” Mr. Mbadi told the panel.
He stressed that the lack of debt transparency has led to misuse of borrowed funds, with many loans not benefiting the public as intended. Debt accountability, he argued, is a pressing demand from the Kenyan people.
“Debt accountability is what most people are demanding. If you listen to Kenyans, they are asking what is our actual debt? That is my priority if I am approved by this House,” Mr. Mbadi stated.
If approved, Mr. Mbadi aims to reduce borrowing and ensure that loans are directly linked to specific development projects to minimize wastage. “We must work on linking projects to loans. We can’t borrow to support our budget or to finance other things that are not development in nature. Debt comes to this country without going to specific projects,” he said.
Regarding the rejection of the Finance Bill, 2024, Mr. Mbadi indicated that he would introduce amendments to parent Bills to salvage beneficial provisions from the rejected Bill. He suggested that the rejection stemmed from a lack of clear communication and public participation.
“The good provisions that are not contentious, in this (withdrawn Finance) bill, which can still help Kenya, we can bring specific amendments to those acts with proper public participation. The public felt there was no proper participation, which we had, but probably they felt they were not listened to. The Bill became bad in the eyes of the public and it had to be rejected in total because of lack of clear communication,” Mr. Mbadi explained.
Mr. Mbadi also outlined his plans to reform the Kenya Revenue Authority (KRA) to enhance tax collection efficiency. He pointed out that the current systems are porous, resulting in significant tax leakages.
“The solution to tax mobilization in this country is to target the KRA. Their system needs re-engineering. We are losing a lot through smuggling and tax leakages because we don’t have a proper system. The system is porous and we must update it to stop leakages. My first meetings will be on how to reform KRA because without that we can’t manage,” he added.
On the issue of pending bills, Mr. Mbadi expressed concerns about the accumulation of fictitious debts. He proposed introducing a system that ensures current debts are not paid until previous ones are cleared, aiming to address the problem of pending bills.
Mr. Mbadi urged the committee to approve his appointment, citing his extensive experience with the budget committee and as chairman of the Public Accounts Committee. He emphasized his deep understanding of the budget-making process and the country’s financial management.
“My experience at the budget committee for 15 years and as the chairman of the Public Accounts Committee has exposed me to the budget-making process and allowed me to interact with government officers at the treasury. I fully understand the budget-making process and the country’s financial management,” Mr. Mbadi concluded.
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