Nominated Treasury Cabinet Secretary John Mbadi, welcome to the hot seat, and congratulations! You will need all the luck you can get. The pressing question is, what direction should Kenya take from here?
First, it’s important to acknowledge the significant effort that has gone into stabilizing the economy over the past two years. Kudos to the outgoing CS, Njuguna Ndungu; public service can often be a thankless job.
However, you must go further. Your predecessor was entrenched in crisis mode and failed to establish a roadmap for recovery. Economic growth cannot occur without a solid recovery plan. Set a timeframe of three months to work with your experts on developing one. The economy must grow—that is the only way to assist Kenya.
Additionally, the relationship between Kenya and the International Monetary Fund (IMF) and the World Bank needs a reset. It has become evident that the IMF does not care if the country suffers. The fact that they could pressure the government into implementing a taxation plan, knowing it would lead to turmoil, is absurd.
The result has been a month of death and destruction! Is the IMF satisfied now? The next roundtable must set aside past grievances and initiate a fresh conversation about what Kenya truly needs and how these institutions can help the country navigate out of the current economic crisis, assuming their intentions are genuine.
You now have a blank check to reimagine the budget. The time has come to establish new structures for Kenya. The upcoming budget process must be guided by the debt audit commissioned by President William Ruto. We cannot allow the budget to remain under pressure from debts that Kenyans are unaware of. Urge the debt audit team to meet their three-month deadline.
It is critical to find immediate ways to inject cash flow into the economy. With money in people’s pockets, the pressure on the government will ease, allowing you to focus on your work.
Privatizations are a viable option. Consider partially divesting government shares in Safaricom, Kenya Reinsurance Plaza, and KenGen, among others. This will provide an immediate boost to government revenues to support the budget.
Encourage the Asset Recovery Agency to operate with greater urgency; they should be recovering billions of shillings in corruptly acquired wealth every month. Establish a fund for these recovered funds to be used for debt repayment.
To tackle youth unemployment, all stalled or suspended youth programs must be reinstated immediately. There will be no shortage of development partners willing to support you. President Ruto has announced the return of Kazi Mtaani, among other initiatives. The crisis in Kenya today is primarily a youth crisis, so implement all fiscal solutions possible to address it.
Embrace transparency and openness, as the Treasury is often seen as secretive. Open all the windows and curtains in that building. Provide quarterly accountability reports detailing all activities. This approach will help engage Kenyans in the process. Rebuilding the credibility of the Treasury should be one of your key performance indicators, and it will be a long and challenging journey.
Kenya needs a long-term bond to begin addressing all pending bills as a means of revitalizing businesses. This is a guaranteed way to stimulate the economy. Prioritizing this should be among your most urgent tasks. Of the numerous projects signed in the past two years, none have commenced; making this a priority is essential. These are truly low-hanging fruits.
The Treasury also requires a new negotiation team for all foreign trips, as the current performance has been unsatisfactory.
Mr. Mbadi, if you seek radical results, you must implement radical measures. This reset must occur within the first 100 days, or it may not happen at all. The country is ready for an overhaul—embrace the opportunity.
