Mudavadi responds to President Uhuru over loans

NAIROBI, KENYA: Former Cabinet Secretary and Opposition leader Musalia Mudavadi has told off President Uhuru Kenyatta over the latter’s response that loan procured by Government  is used to fund public infrastructure.
Mudavadi who is also the Amani National Congress (ANC) leader said he is qualified to know what loans are useful to the country and the ones that spell economic ruin.
“I have not opposed loans. But I have told Uhuru and maintain that the scramble for commercial instead of concessionary loans is ruinous to the country’s economic well-being. I should know and can tell him again that the high debt levels are a result of gobbling loans that are punitive to tax payers at the end,” he said.
Mudavadi went on: “Commercial loans attract high interest rates and short repayments periods unlike concessionary ones. I also know that these loans are expensive because of the high mark-up that unscrupulous contractors exert on project costs.”
The former Deputy Premier said that the Jubilee regime preference for glamorous projects that result in punitive taxation and high cost of living are underwritten by corruption.
“I am giving the President free advice that corrupt commissions and toll stations are making those projects very expensive,” he said.

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