The CS made the revelation while speaking on the second day of the 52nd East African Revenue Authorities Commissioners General (EARACG) meeting in Nairobi, hosted by the Kenya Revenue Authority (KRA).
National Treasury Cabinet Secretary John Mbadi on Monday, November 18 revealed that Kenya loses Ksh2 billion a day. To put it into perspective, these are nearly the exact sentiments that former President Uhuru Kenyatta uttered in 2021.
The CS made the revelation while speaking on the second day of the 52nd East African Revenue Authorities Commissioners General (EARACG) meeting in Nairobi, hosted by the Kenya Revenue Authority (KRA).
Mbadi had explained why the looters of public funds had resorted to investing abroad, noting that the bulk of the money leaves the country, a matter which deprives the Kenyan state of crucial taxes and employment opportunities further crippling the economy and passing on the burden to taxpayers.
“Some of us steal money here, we go to Tanzania and invest there because when we invest in Kenya, it will be more visible,” he revealed.
Treasury CS John Mbadi says the country loses Ksh2 billion daily to theft of public funds.
N.B: These are remarks made previously by former President Uhuru Kenyatta
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In terms of avoiding detection, the CS further revealed that the suspects engage in money laundering abroad so as to avoid being found out by security agencies at the border points.
“You also bring money from Tanzania by road, then come and start constructing buildings around here. That is what people do,” he revealed, lamenting that the menace has cost the country billions of money in taxes.
“If we are stealing Ksh2 billion per day and scale down by half, we would be saving a billion Kenyan shillings which would accumulate to Ksh365 billion a year which is more than external borrowings.”
Mbadi reasoned that if properly managed, proceeds from corruption can be used for development as well as reduce external borrowings.
The assertion that Kenya loses Ksh2 billion daily highlights a critical need for reform in fiscal policy and governance practices in the management of public resources.
According to Uhuru’s claim in 2021, Ksh2 billion was stolen every day from the government through corruption, accumulating to close to Ksh730 billion per year.
In terms of expenditure and projects, the money stolen in a year could construct close to 10 Nairobi Expressways. Uhuru at the time was speaking in reference to claims that a referendum to determine the fate of the defunct Building Bridges Initiative (BBI) would cost around Ksh2 billion.
“Even those talking about the cost of a referendum, I don’t know where they are getting those figures from…we are waiting for the signatures to be verified then take the process to the counties.
“These people don’t mislead the public that Ksh2 billion will be spent, yet what they steal every day is more than Ksh2 billion. These people are useless, and I will say it openly, how much do they spend every year? My interest is that more resources revert to the people at the grassroots,” said Kenyatta during an interview with Kikuyu radio stations; Inooro, Kameme and Gukena.
On May 23, 2024, the United States (US) government provided Kenya with billions of shillings to help the country strengthen its anti-corruption efforts.
Uhuru Kenyatta and President William Ruto interact on Saturday, November 16, 2024 in Embu County. /PCS