In a bold move to secure Kenya’s financial future, the country’s government has taken steps to address its fiscal challenges. In a recent video address, a high-ranking official outlined the administration’s plans to cut spending and increase revenue generation to avoid debt distress and bankruptcy.

The speaker emphasized the need for Kenyans to “tighten their belts” as the government works to rein in expenses. This includes a focus on living within the country’s means and not spending more than it has. The official also noted that Kenyans have long believed they pay the highest taxes, but data shows that Kenya’s tax-to-revenue ratio is significantly lower than its African peers, standing at just 14% compared to the regional average of 22-25%.

To address this, the government has made a concerted effort to enhance revenue collection. The speaker’s goal is to raise the tax-to-revenue ratio to 16% this year and between 20-22% by the end of his term. While he acknowledges this will be a difficult task, requiring extensive public explanation and likely facing some opposition, he believes it is a necessary step for Kenya to become a “serious state.”

The official also emphasized that the money Kenya borrows from institutions like the World Bank is effectively the savings of other countries. This underscores the need for Kenya to become more financially self-reliant and reduce its dependence on external debt.