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1. In almost every economy, the government is one of the biggest customers of the private sector for supply of goods & services. The private sector reinvests the money & this helps grow the private sector & the economy & also create sustainable employment for the citizens.
2. Since 2013, trillions of shs in development budget & recurrent expenditure has gone into briefcase cos - to well connected folks with no real businesses & who don't employ even their spousese. Their inflated profits are used to buy Mercs, real estate & expensive overseas hols
3. Add that to the fact that almost all the monies we borrowed over the last 7 years did not even come into the economy. We borrow from a Chinese bank & give the contract to a Chinese company. The money moves from one account in China to another in China.
4. The Chinese contractor imports almost everything needed to undertake the project- including labour. When it comes to repaying these loans, however, we use the taxes we collect from the poor folks in King'eero, Muimuto & Nyathuna. Double whammy!
5. So in short, we borrow huge amounts of money - the money never comes in to stimulate the economy & we pay for these loans using our internally generated revenues which we have to then convert to dollars & in the process hurt our shilling & reserves.
6. Then you wonder why despite being told our economy is growing at 6% every other year, we have no jobs created, business are closing every other day & our shilling is tanking.
7. This country's economic model is screwed & we will all suffer the consequences in the yrs to come. Yet, we are not interested in discussing these things. Those in charge seem not to care & are digging the hole even deeper. I will be very surprised if we don't default in 2021.
