The National Treasury has come out to defend the use of part of the Road Maintenance Levy to secure a Sh175 billion credit from local banks.
He claims that the fund had become a corruption bubble for road constructors who are now hitting back after the government put the funds into better use.
What is interesting is that at no time has the government come out to tell Kenyans that it had use the fund as a collateral for loans.
This only emerged after the price of fuel went up by a high of Sh9 on Tuesday after which Kiharu MP Ndindi Nyoro made the revelation that the fund had been use as security.
The government is free to borrow to fund its recurrent and development budgets but when this is done secretly ten it raises concerns.
The National Treasury is supposed to publish all foreign and local loans annually to give Kenyans a picture of the country’s indebtedness.
However what happens is that the government only gives the cumulative figure of the local and foreign debts without offering many details.
Opaqueness in borrowing brings to mind the yet to be answered question of how Eurobond 1 was used.
Heavily taxed Kenyans end up repaying the loans so the details must be made public.
