The economy is “bleeding” and unless the National Treasury restructures and reschedules the national debt the situation will worsen, ANC leader Musalia Mudavadi warned yesterday.

He said the country must manage its national debt to rescue the economy from collapsing.

“We are sitting in a corner, the welfare of the people bad,” Mudavadi said during a requiem mass for the late Matungu MP Justus Murunga at St Stephens Church in Nairobi.

“I have been there before and I know it can be done. (National Treasury Cabinet Secretary Ukur) Yatani has no option but to negotiate with lenders,” Mudavadi said in reference to his tenure as Finance minister.

Yatani yesterday warned of tough times ahead that could lead to delayed disbursement of money for State operations as Kenya’s debt level hits Sh7.1 trillion.

Yesterday, Mudavadi urged MPs to support and fast-track the Public Debt Management Bill which is currently before Parliament.

The bill sponsored by Nambale MP Sakwa Bunyasi is in the Second Reading stage and according to Mudavadi will help in addressing the current problem the country is facing.

“I urge you to push the bill to pass, give it first priority. The debt means higher taxes, no money to the counties, nothing to pay for the doctors’ salaries,” Mudavadi told MPs present.

He hit at Deputy President William Ruto for playing “Mr Clean” in the current economic crisis facing the country.

“The Jubilee government must tell us how the debt was incurred, Ruto is part of it and cannot shift blame to others.”

Some of the leaders who were present during the mass include Busia Senator Amos Wako and his Nairobi counterpart Johnson Sakaja, MPs Benjamin Washiali, Emmanuel Wangwe, Didmus Baraza, Ferdinand Wanyonyi, Dan Wanyama, Ayub Savula and Mwambu Mabonga.

Murunga died on November 14 while being rushed to the hospital. The cause of his death is unknown but reports indicate he had breathing difficulties before collapsing in his Kakamega home.

He will be buried at his Matungu home on Saturday.