Grand promises: The high cost of financing Cord, Jubilee manifestos
Saturday February 9 2013
If promises were to be fulfilled to the letter by either Raila’s Cord or Uhuru’s Jubilee, the country’s budget would increase by $2.3 billion. Photos/FILE/TEA Graphic Nation Media Group
The manifestos by the Coalition for Reforms and Democracy (Cord) headed by Prime Minister Odinga and the Kenyatta-led Jubilee Alliance are loaded with welfare promises, but short on innovative ways of financing the programmes.
Economists and business executives say that, while the proposals by the two candidates would improve the living conditions of millions of Kenyans, their implementation would raise public spending, triggering a sharp rise in borrowing.
Kenya is currently grappling with increased budgetary needs amid revenue shortfalls. Any rise in borrowing could trigger higher interest rates and reduced demand for borrowing from the private sector, stunting growth.