If the Kenyan government manages to reduce corruption by half, it could easily meet its international debt obligations.

Treasury Cabinet Secretary John Mbadi disclosed this information on Wednesday evening when he was defending President William Ruto’s economic plan focused on increasing revenues and reducing unnecessary governmental expenditures.

He highlighted that one key issue is public procurement, as this has been a substantial cause of financial leaks.

"We've discussed adopting e-procurement as we incur substantial losses solely due to procurement processes. Various statistics have circulated; you might recall the previous president mentioning that we were losing approximately KSh2 billion daily. Once, during an appearance on Citizen TV, I jokingly stated that if we managed to cut our theft by half, things would improve significantly," Mbadi explained.

The Treasury Secretary said that if we manage to reduce the approximate daily loss of KSh2 billion due to corruption by at least fifty percent, the nation would conserve KSh365 billion each year—a sum significantly larger than the KSh280 billion in foreign debts scheduled for repayment in 2025.

If our economy is losing KSh 2 billion daily due to theft and we decide consciously to halve this amount… Even if those accustomed to stealing KSh 1,000 decided to take only KSh 500—which isn’t ideal but my aim is for nothing to be stolen at all—we could still save KSh 1 billion every day, which amounts to KSh 365 billion annually.

Mbadi emphasized that through these savings, Kenya would have enough funds to cover all its debt commitments without needing additional foreign loans.

"The funds mentioned here are those we obtain from external sources. This year’s foreign debt stands at only Kshs 280 billion, which is significantly lower than the amount we could conserve. Therefore, we won’t have to seek additional financing elsewhere," he clarified.

Unsustainable counties

Apart from corruption, Mbadi criticized the present decentralized governmental structure, asserting that the 47 counties are not economically viable because of the escalating payroll expenses.

He proposed that Kenya might return to using the former eight provinces or, alternatively, fourteen regions as the foundation for decentralized administrations.

Mbadi indicated that the fragmented governmental framework has led to numerous bureaucratic tiers which deplete public funds.

"When you visit various counties, you encounter an array of personnel—from fishery directors and boda boda operators to musicians and cultural experts—all receiving substantial wages along with their deputies. The number of individuals involved is enormous. Additionally, one must consider that having 47 counties might be excessive for a single nation," he stated.

Each of the 47 counties boasts a comprehensive governmental structure—a governor, akin to a miniature president, alongside a deputy who frequently acts as their partner, often facing challenges in finding meaningful tasks. In addition, these regions host several ministers—many counties opt for the cap limit of 10. Furthermore, we see Chief Officers numbered beyond ten, along with functioning county assemblies.

8 to 14 decentralized units

Mbadi also mentioned that a less complex system could prove more effective in addressing the nation's fiscal emergency.

"I would go for a maximum of 14, but even 8 would still serve us perfectly well, with resources devolved to the grassroots. We can devolve resources without devolving the heavy government to the grassroots. It is unsustainable."

Mbadi also pointed out that the monthly expenditure on wages at the national level totals Ksh80 billion, which adds up to approximately Ksh1 trillion yearly. When combined with Ksh1.1 trillion in debt servicing, there is minimal space left for progress initiatives.

"Our government has substantial expenses. Currently, we're spending KSh80 billion monthly at the national level just on salaries. Annually, this amounts to approximately KSh960 billion—nearly reaching a trillion. Our total revenue collection stands around KSh2.5 trillion, with roughly KSh1.1 trillion being used for debt repayments. Given these figures, how can we allocate funds for development?" Mbadi further explained.

Mbadi's comments have ignited discussions about whether Kenya’s governmental framework should undergo reassessment to enhance effectiveness and reduce expenses.

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