Shaddy Mosoba retweetledi
Kenyans,
Come,
Let me tell you something,
THE GOVERNMENT IS BROKE.
Don't be fooled by stories.
When Uhuru borrowed EUROBOND, the aim was to free the domestic financial market [Banks, SACCOs] because the government didn't have to borrow locally.
This means it would be easier for you to borrow locally [Loans] to do business or invest.
Banks would be hawking loans, their loan agents loitering in offices, begging you to apply for loans.
This occurred during Kibaki's presidency. Bank loans were easily given.
But because Uhuru misused the Eurobond, the government is now borrowing locally to fund the budget.
Go to a bank and apply for a loan, and see if you will be given one.
You won't.
The interest is also high.
Because the Government is heavily borrowing from local banks, and for banks, the Government is a profitable customer.
It is the reason why so many microfinance kiosks are mushrooming everywhere, taking advantage of the desperation of Kenyans seeking credit.
But do you know who will pay for these loans?
Your TAXES.
Do you know whose money is in these banks?
It is YOUR MONEY.
Banks don't have money.
The money in banks is your salary, your business income, your profits, your M-Pesa deposits. All these funds are held by these banks for your benefit.
The government borrows your money from these banks, then repays your money in the banks with your taxes.
The government has to:
• Pay Eurobond
• Pay bank loans
• Pay salaries
• Fund infrastructure development
• Fuel the president's car
These can only be achieved by either DEFAULTING on these loans or raising TAXES.
Therefore, the banks and government are doing business [illegally] with your money.
This illegal business between the government and the bank is not making sense.
Here is why,
The total assets of banks are KES 7.7 trillion.
Banks have loaned people [You and me] KES 4.0 Trillion.
Banks have loaned the government KES 6.8 trillion.
6.8 + 4.0 = 10.8.
10.8 loaned against their assets of 7.7 is impossible. Does that mean banks made a loss of 3.1 trillion?
This is not sustainable.
Meanwhile, for this government to function, it has to create a sovereign fund, an infrastructure fund and other funds like a housing levy [which are illegal] to survive.
Countries create this fund as a basket for surplus revenue or profit from their exports, such as the sale of Oil.
A fund is a separate basket, distinct from the consolidated fund, where money is pooled and kept for future use.
Since these funds are not sanctioned by parliament, they can't be audited or budgeted constitutionally.
President Ruto must do the right thing and stop going around corners.
Arrest the people who pocketed EUROBOND,
He knows them.
DON'T PAY the illegal debts.
He knows he will ultimately default.
Otherwise, the next finance bill will be worse.
English
