The people have a right to information
FoRD-Asili wishes to express utter shock and deep disappointment for the government’s lack of openness on the mobilized gigantic resources to fight the coronavirus since the first case was reported in March. Little is known about the whereabouts of these huge amounts.
We understand, regrettably, and sad to hear that these funds ended in private banks and selected elites who deposited these funds in high interest-earning-accounts whereby these banks and individuals are making huge profits by denying and depriving the people.
In responding to the pandemic and its challenges, as well as other budgetary spending, the government approached multilateral lenders including the International Monetary Fund, World Bank and African Development, for funds, (this is not the first time, we must say, for government to capitalize on people’s suffering). Indeed, these overtures account for the bulk of the 299 billion shillings Kenya contracted in form of external loans and grants in the fiscal year to June 2020. From the World Bank, Kenya received $1 billion concessional funding, IMF’s rapid credit facility ($739 million) and €188 million loan from African Development Bank.
These corona funds were first and foremost meant to fight the virus through direct interventions in healthcare. Secondly, these funds were meant to plug revenue shortfalls as a result of the pandemic and help finance the budget deficit.
A key measure as to the success of the placement and spending of these funds lies on assessing the areas funded and the pitfalls filled. Treasury is yet to provide a detailed list, offering a blow-by-blow account of how the corona funds were used.
But what are our observations so far?
Transfers to county governments: Treasury continues to drag its feet in releasing cash to the devolved units. Indeed, only 315.97 billion shillings had been released to counties by close of the financial year, falling short of what was legally entitled to the 47 units: 316.5 billion shillings in equitable share, 22.895 billion shillings and 39.089 billion shillings for conditional grants funded by National Government and Development Partners, respectively. In total, counties should have received 362.81 billion shillings in 2019/2020 Financial Year.
Pending bills: suppliers to ministries, departments and agencies as well as county governments are yet to be paid their money, despite supplying goods and services.
These non and delayed payments have witnessed untold suffering to SMEs and contractors who have seen their livelihoods shattered as some had taken loans to undertake contracts, and have had their property seized and auctioned.
VAT and tax refunds: the increasing backlog in VAT and tax refund dues is causing pain to manufacturers. Many businesses are facing liquidity challenges as a result of this continued delay. It is therefore embarrassing and annoying to read that despite Kenya borrowing these funds to benefit the people, the same funds are yet to reach them. Yet it is Kenyans themselves as taxpayers to eventually pay these loans.
The government has assumed Kenyans for far too long as toothless, docile, simple, passive and primitive publics who care less about their plight. Kenyans are kept poor, hungry and drunk for easy, cheap, and sadistic governance.
NOW THEREFORE, we call on the National Treasury to immediately issue a statement of facts on how the corona funds have been appropriated to date and, on the same breath, remind Kenyans as the sovereigns in this state, it is their business to reclaim their space.
Mtumishi, Njeru Kathangu
Secretary General-FoRD-Asili
