The government might be forced to shut down some key parastatals as one of the radical measures meant to improve service delivery and cut wastage, Prime Cabinet Secretary Musalia Mudavadi disclosed yesterday.

Mudavadi said hard decisions would have to be made to support debt management including closing down some of the State corporations.

The former Finance Minister told a media briefing where he discussed a raft of issues facing the country that the Jubilee administration borrowed to the brim making the debt levels almost unmanageable.

“We are however in talks with the International Monetary Fund on the management of the debt with an aim of having repayment rescheduled,” he disclosed.

The Prime Cabinet Secretary said debt repayment remains the main impediment to the growth of the economy but assured that appropriate measures had been put in place to address the issue.

Planned tax measures

“We knew it when campaigning that the ballooning debt was an issue and we were prepared on how to tackle it when we assume power,” Mudavadi assured.

He told Kenyans to brace for more taxes to support the budget but was quick to assure that the planned tax measures will not reach levels where they will overburden the taxpayer. “As we seek to broaden the tax base, we will not burden people’s businesses. No; that is not part of our plan,” Mudavadi explained.

Although he was of the opinion that all is not lost in the management of the economy, the 2013 presidential candidiate urged  tobe prepared for hard times ahead.

“We are committed to improving the economy, we do not want to sugar-coat the situation, all is not well but there is hope,” he said.

One of the key measures the Kenya Kwanza government has already introduced is removing fuel subsidies which were a burden to the economy.

He added: “We have been put to the current situation by the reckless borrowing perpetuated by the former administration. Economic recovery is a process.”

Mudavadi revealed that to address the debt burden, the Kenya Kwanza government plans to shift from commercial borrowing which is very expensive to concessional borrowing which gives a longer repayment window.

Concessional loan

“The reason as to why we are in the current situation is because the former regime went huge on commercial borrowing whose repayment period is too short to benefit the economy. The concessional loan is made on more favourable terms than the borrower could obtain in the market. Concessional terms may be either of lower interest rate or deferred repayments,” he explained.

Mudavadi also downplayed the alleged tiff between his office and that of the Deputy President Rigathi Gachagua terming it the creation of a few disgruntled elements outside the government.

Cross- cutting issues

“My role and that of my office is complimentary. It is to assist the President and his Deputy. My roles are very clear and if there are cross-cutting issues there are mechanisms to address the same,” he said.

He said he has been in government long enough to understand how it runs.

On politics, the Prime CS said the Kenya Kwanza government has no plans to stifle the Opposition adding that the government was looking at an operating Opposition as opposed to the former regime which opted to go to bed with the latter.

“In developed democracies, the Opposition and government work together to strengthen institutions not to weaken them,” he said adding that the planned establishment of the office of the Leader of Opposition is not aimed at weakening an individual but to make that office stronger,” he elucidated.

 The former lomg-serving Sabatia Member of Parliament at the same time dismissed as “hot air” claims by the Azimio la Umoja leadership that last year’s elections were rigged in favour of President William Ruto.

“What the Opposition should be telling Kenyans is where the so-called whistle-blower was when they filed a petition in the Supreme Court. The results were in a public portal and were run electronically for all and sundry to see,” Mudavadi said.

He told the Opposition to move on and take a lead in playing its role of checking the government instead of engaging in rhetoric which were not helpful to the people.

Asked what his thoughts on the stand taken by his 2013 running-mate Jeremiah Kioni who made the rigging claims, Mudavadi said, “What worries me is what has happened to him. He is not the Kioni I know.”

On Wednesday, Kioni claimed that Raila won the August 9, 2022 presidential election. He alleged that Raila got 8.17 million votes or 57.53 percent of the votes cast while Ruto garnered 5.91 million votes or 41.66 percent of the total votes cast.

Kioni pegged his figures on an anonymous whistle-blower, an alleged IEBC staff, who claimed that Raila beat Ruto in the elections.

“We have no reason to doubt the information which confirmed our fears,” Kioni said.