Author name: DeepState Insider

The Greedy Borrower 4B BORROWED EVERY DAY! SINCE RUTO TOOK OFFICE Debt Tsunami: Ksh 11.4 Trillion Burden When William Ruto took office in September 2022, he inherited a substantial national debt. However, rather than implementing the fiscal discipline he promised during his campaign, President Ruto has overseen an unprecedented borrowing spree that threatens to drown Kenya’s economy and burden generations to come. The Staggering Numbers Kenya’s public debt has skyrocketed under Ruto’s administration: September 2022 (Ruto takes office): Ksh 8.6 trillion April 2024: Ksh 10.8 trillion (an increase of Ksh 2.2 trillion in just 19 months) Debt-to-GDP ratio: Increased from 67.4% to 73.5%, far exceeding the East African Community’s convergence criteria of 50% This translates to approximately Ksh 3.9 billion borrowed every single day since Ruto assumed office—an astonishing figure that has alarmed economic experts, international financial institutions, and ordinary Kenyans alike. The Eurobond Crisis Perhaps the most concerning aspect of Ruto’s borrowing has been the management of Kenya’s Eurobond obligations: June 2024 Eurobond maturity: $2 billion (approximately Ksh 260 billion) Initial plan: Ruto promised to repay through fiscal discipline and improved revenue collection Reality: Kenya secured a last-minute $1.5 billion IMF loan in March 2024 to avoid default The near-default on the Eurobond payment sent shockwaves through international markets, with Kenya’s credit rating downgraded by both Moody’s and Standard & Poor’s. This downgrade has increased borrowing costs, creating a vicious cycle of more expensive debt. The Chinese Debt Trap Despite campaign rhetoric criticizing Chinese loans, Ruto’s administration has deepened Kenya’s dependence on Chinese financing: New Chinese loans since September 2022: Ksh 372 billion Controversial projects funded: Including the Nairobi Expressway Extension (Ksh 94 billion) with non-disclosed terms Collateralized assets: Reports indicate strategic national assets, including the Port of Mombasa, have been used as collateral A leaked audit report from the Office of the Auditor General in January 2024 revealed that several Chinese loan agreements contain confidentiality clauses preventing public disclosure of terms, raising serious concerns about sovereignty and transparency. The Domestic Borrowing Squeeze As international lenders become more cautious about Kenya’s debt sustainability, Ruto has turned aggressively to domestic borrowing: Domestic debt increase: Ksh 970 billion since September 2022 Treasury bill rates: Increased from an average of 9.2% to 15.7% Impact on private sector: Bank lending to businesses decreased by 17% as financial institutions prefer the high-yield, low-risk government securities This “crowding out” effect has stifled private sector growth, contributing to business closures and job losses across the country. The Hidden Costs Beyond the headline figures, Ruto’s borrowing has created additional burdens: Debt servicing costs: Increased to 54% of total revenue (from 43% in 2022) Development budget cuts: 37% reduction to accommodate debt payments Essential services affected: Healthcare, education, and agricultural subsidies slashed In practical terms, this means that for every Ksh 100 collected in taxes, Ksh 54 goes to creditors rather than to services for Kenyans. The IMF Conditionalities To secure continued IMF support, Ruto’s government has agreed to harsh conditions that directly harm ordinary citizens: Removal of fuel subsidies: Resulting in 43% increase in transport costs Increased taxation: Introduction of new taxes including housing levy and doubled VAT on bread and cooking oil Public sector downsizing: Over 14,000 civil servants retrenched These austerity measures have disproportionately affected low and middle-income Kenyans, contradicting Ruto’s “bottom-up” economic model promises. The Generational Burden Perhaps most concerning is the long-term impact of this debt: Per capita debt: Every Kenyan (including newborns) now owes approximately Ksh 220,000 Future obligations: Debt repayment schedules extend to 2071 Opportunity cost: Funds that could transform healthcare, education, and infrastructure are diverted to debt servicing Economic analysts from the University of Nairobi’s School of Economics have calculated that if current borrowing trends continue, Kenya’s debt could reach Ksh 15 trillion by the end of Ruto’s first term in 2027. The Accountability Deficit Despite the severity of the situation, Ruto’s administration has shown a troubling lack of transparency: Parliamentary oversight bypassed: Multiple loans secured without required National Assembly approval Expenditure questions: Major discrepancies between borrowed amounts and visible projects Audit limitations: The Auditor General has flagged Ksh 367 billion in unexplained debt proceeds Sources: This article draws from multiple sources including: National Treasury of Kenya Quarterly Economic and Budgetary Reviews (2022-2024); Central Bank of Kenya Monthly Economic Indicators; Parliamentary Budget Office Debt Sustainability Analysis Report (February 2024); International Monetary Fund Country Report No. 24/87 on Kenya; Office of the Auditor General Reports on Public Debt Management (2023); Institute of Economic Affairs Kenya Public Debt Monitor; World Bank Kenya Economic Update (December 2023); Moody’s and Standard & Poor’s Kenya Credit Rating Reports (March 2024); and Kenya National Bureau of Statistics Economic Survey 2023. Additional data was sourced from the Controller of Budget’s reports and public statements by the Cabinet Secretary for Treasury between September 2022 and April 2024.

Overzealous Tax Collector 40% TAX ON GROSS INCOME “Kenyans are overtaxed, repressed, exploited and abused. They don’t receive even 1% worth of value from their taxes!” — Miguna Miguna, Tax Burden Explosion: 14 New Taxes When William Ruto campaigned for the presidency, he positioned himself as the champion of ordinary Kenyans—the “hustlers” struggling to make ends meet. He promised to reduce the cost of living and create an enabling environment for small businesses to thrive. Instead, his administration has implemented the most aggressive taxation regime in Kenya’s history, crushing businesses and pushing millions deeper into poverty. The Finance Act 2023 Catastrophe The Finance Act 2023 stands as the most controversial tax legislation in Kenya’s history: Introduced 14 new tax measures in a single bill. Sparked nationwide protests resulting in 39 deaths (according to the Kenya Human Rights Commission). Required military deployment to quell public outrage. Among its most punitive provisions: Housing Levy: A mandatory 1.5% deduction from all formal sector workers’ salaries. Doubled VAT on bread and cooking oil (from 8% to 16%). 16% VAT on previously zero-rated petroleum products. Digital asset tax of 3% on all online transactions. Motor vehicle tax increases of up to 35%. The Parliamentary Budget Office estimated that these measures would extract an additional Ksh 211 billion from an already struggling population, with the heaviest burden falling on low and middle-income earners. The Housing Levy Deception Perhaps the most contentious tax has been the Housing Levy: Marketed as: “Affordable housing for all Kenyans” Reality: A forced savings scheme with no clear allocation mechanism Over Ksh 80 billion (as of March 2024) Houses built: Fewer than 5,000 units completed Beneficiaries: Primarily politically connected individuals Court challenges to the levy have been met with legislative maneuvers to circumvent judicial rulings. When the High Court declared the levy unconstitutional in November 2023, Ruto’s administration simply reintroduced it through a separate bill, ignoring the court’s determination. The Digital Tax Assault Ruto’s government has aggressively targeted Kenya’s vibrant digital economy: Digital Service Tax: Increased from 1.5% to 3% Mobile Money Transfer Tax: Raised from 10% to 15% Internet Data Tax: New 15% excise duty on internet packages These measures have directly contradicted Ruto’s campaign promises to support youth entrepreneurship in the digital space. The Kenya Association of Digital Entrepreneurs reported that over 27,000 online businesses closed within six months of these taxes taking effect. The Small Business Extinction The impact on small businesses has been devastating: New turnover tax: 3% on all businesses with revenue under Ksh 5 million Presumptive tax: Fixed amounts regardless of profitability Import declaration fee: Increased from 2.5% to 3.5% The Kenya National Chamber of Commerce and Industry reported in February 2024 that approximately 42% of small businesses had either closed or significantly downsized since Ruto took office, with excessive taxation cited as the primary cause. The Fuel Price Crisis Despite global oil prices decreasing, Kenyans are paying record prices for fuel due to taxation: Fuel taxes and levies: Now constitute 48% of the pump price New taxes added: Road Maintenance Levy increased by Ksh 5 per liter Anti-adulteration levy: Doubled from Ksh 18 to Ksh 36 per liter VAT on fuel: Increased from 8% to 16% The ripple effect has been catastrophic across all sectors, with transportation costs increasing by 43% and food inflation reaching 15.3% by March 2024, according to the Kenya National Bureau of Statistics. The Double Taxation Nightmare Many of Ruto’s tax measures amount to double taxation: Taxing already taxed income (Housing Levy on net salary) Imposing VAT on products whose inputs have already been taxed Charging excise duty on services that already attract VAT The Tax Justice Network Africa has described Kenya’s current tax regime as “predatory and regressive,” noting that it disproportionately targets those least able to pay while providing generous exemptions to politically connected corporations and individuals. The Revenue Without Services Paradox Despite record tax collection, public services have deteriorated: Kenya Revenue Authority collections: Increased by 22% (FY 2022/23) Healthcare budget: Reduced by 17% Education allocation: Decreased by 9% Road maintenance funding: Cut by 23% despite increased road levies This disconnect between increased taxation and decreased services has fueled public perception that tax revenues are being misappropriated or diverted to debt servicing rather than public benefit. The International Comparison Kenya’s tax burden under Ruto has become one of the highest in Africa: Tax-to-GDP ratio: Increased to 17.8% (compared to African average of 14.2%) Number of different taxes: 42 distinct taxes (compared to Tanzania’s 27 and Rwanda’s 22) Compliance costs: Kenyan businesses spend an average of 180 hours annually on tax compliance (East African average: 104 hours) The World Bank’s Ease of Doing Business indicators show Kenya has dropped 17 places since 2022, with the tax burden cited as a primary factor. The Constitutional Questions Many of Ruto’s tax measures have faced constitutional challenges: Lack of public participation in tax legislation Violation of principles of equity and fairness Implementation of taxes struck down by courts Bypassing parliamentary oversight through executive orders The Law Society of Kenya has filed 11 separate constitutional petitions challenging various aspects of Ruto’s taxation regime, with several cases still pending before the courts. Sources: This article draws from multiple sources including: Kenya Revenue Authority Tax Collection Reports (2022-2024); Parliamentary Budget Office Analysis of the Finance Act 2023; Kenya National Bureau of Statistics Economic Surveys and Inflation Reports; World Bank Kenya Economic Update (December 2023); Kenya Association of Manufacturers Economic Impact Assessment (January 2024); Kenya National Chamber of Commerce and Industry Business Survey (February 2024); Tax Justice Network Africa’s Kenya Taxation Report; Kenya Human Rights Commission documentation of Finance Act protests; Court judgments on tax-related constitutional petitions; and public statements by the Cabinet Secretary for Treasury between September 2022 and April 2024. Additional data was sourced from the Institute of Economic Affairs Kenya and the Kenya Institute for Public Policy Research and Analysis (KIPPRA) economic reviews.

A lying President 270 promises 14 fulfilled 3 Years in office The President of Empty Promises – How William Ruto Betrayed the Hustler Nation When William Ruto campaigned for Kenya’s highest office in 2022, he styled himself as the ultimate “Hustler” — a self-made man who understood the pain of ordinary Kenyans. He promised a radical “Bottom-Up” economic transformation that would uplift the millions living paycheck to paycheck. From affordable housing to mass job creation, cheap cooking gas, and free internet, Ruto made bold promises. Just two years into his term, a mountain of evidence showed that those promises were little more than political bait — and Kenyans are no longer buying the lie. A Government Built on Broken Promises Ruto’s campaign was anchored on a pledge to inject Sh250 billion into small-scale agriculture over five years — supposedly the beating heart of the bottom-up economy. Yet, to date, farmers have seen little to no benefit. Credit remains inaccessible, subsidies are scarce, and many rural producers are worse off. Similarly, his promise to build 250,000 affordable homes every year has not materialized; costs remain high, delivery slow, and demand unmet. In total, only 5.2% of Ruto’s 270 campaign promises have been fully honored, according to Mzalendo’s Promise Tracker. An overwhelming 120 pledges remain “in progress,” while 22 have already been declared broken. The numbers speak for themselves — Kenyans were sold dreams that have quickly soured into disillusionment. The Jobs That Never Came Ruto vowed to create 4 million jobs for the youth. In reality, government data shows that only 782,300 jobs were created in 2024, while youth unemployment hovers at a crisis-level 38%. Despite rhetoric about tapping into the digital economy, his promise that Kenyan youth would “earn big” through online work has gone unfulfilled. Access to skills, connectivity, and real opportunities remains abysmal. Even his promise of nationwide free internet — vital for digital jobs — has vanished into thin air. The Affordable Life That Got More Expensive Ruto pledged to bring cooking gas prices down to KSh300. Today, prices remain stubbornly high, burdening already struggling families. He promised to provide free diapers for newborns for six months — a policy that never even got off the ground. Another promise to lower National Health Insurance Fund (NHIF) premiums to KSh300 turned into a cruel twist: instead, a 2.75% income deduction was imposed on every Kenyan. Worse still, even small symbolic taxes like the turf removal levy — which Ruto once vowed to scrap — have been quietly reintroduced. These broken promises add insult to injury, especially for the working-class Kenyans who believed they finally had one of their own in power. The Cabinet of Inequality Gender equality was another pillar of Ruto’s campaign. He promised that 50% of his Cabinet would be women. The result? Just 7 out of 22 Cabinet Secretaries (32%) are women. Once again, the commitment was loud in words, silent in action. Fighting Corruption — Or Protecting It? Perhaps one of the most cynical betrayals was Ruto’s vow to launch investigations into state capture within 30 days of taking office. Not only has no probe been initiated, but corruption scandals have multiplied under his watch — some implicating senior figures in his own administration. The dream of clean governance has become another broken shard in a pile of discarded promises. The Verdict: A Presidency of Deceit In every sector — agriculture, housing, employment, healthcare, governance — Ruto has overpromised and underdelivered. Independent media, watchdogs, and civil society organizations have chronicled this collapse of trust. The Star, Citizen Digital, and Mzalendo all confirm what Kenyans already feel in their bones: the Hustler-in-Chief has lost credibility. On social media, chants of #HustlerMustGo echo loudly. Youth protestors carry placards that read “We won’t be fooled again”. Former allies have turned critics, calling Ruto’s government a “fraud of empty rhetoric.” The anger is not just online — it’s spilling into the streets, into town halls, into WhatsApp groups and across barbershops and buses. The conclusion is clear: the dream sold to Kenyans was a lie. What Comes Next? William Ruto campaigned as a revolutionary, a disruptor who would end elite impunity and restore dignity to the ordinary citizen. Instead, he has governed like just another crooked politician — full of hollow speeches, quick U-turns, and broken promises. As frustration boils over, many Kenyans now agree on one thing: only new leadership can restore hope. The betrayal is too deep, the lies too many. In the words of a recent protest chant, “Hustlers won’t be fooled again.” Sources: The Star Citizen Digital Mzalendo Promise Tracker