Time for China to take fresh look at our debt portfolio

Health Cabinet Secretary Mutahi Kagwe has repeatedly reminded us that Covid-19 is not a joke. This scourge could finish us in more than one way, if we are not careful. It threatens us across a variety of sectors. Scourges of this kind have previously wiped out millions of people and destroyed entire social orders. The bubonic plague killed about 200 million people in the period 1347 and 1351. The Spanish influenza of 1918 – 1919 killed about 50 million people. Challenges of this kind diffuse the social and political boundaries. Accordingly, Kenyans must all be enjoined in the war against Covid-19, regardless of political leanings and affiliations. 

Combating this scourge requires that we concurrently focus on several important concerns. Some are deceptively distant from the scourge. For one, the pandemic is slowly but surely crippling our economy. If we don’t pay deliberate attention to the economy and consciously mitigate against the threats, this thing could deal us a terrible blow.

In isolated epidemics in individual populations, it is possible to seek external help. Covid-19 has, however, hit virtually every country. There are no international Good Samaritans to turn to for support. Each country must first face Covid-19 on its own, before any international efforts can come into the equation. As Kenyans, we must accordingly brace ourselves up to address Covid-19 on our own.

We need forward-looking strategies towards a restored, stable and robust national economy. Indications are that the National Treasury is on a weak footing, even as the various voices asking for State intervention grow by the day.

The President has issued a raft of fiscal interventions, which could give some relief in the short term. In the long term, however, a lot more remains to be done.

While some measure of tax relief has been given, it is a fact that the Kenya Revenue Authority (KRA) is going to be hit hard. The State can only collect taxes where income is being generated, or some goods or services are being bought. Covid-19 is threatening to annihilate earnings and – with them – taxes. In the United States, three million people lost jobs last week alone. We are going to witness this trend all over the world in the coming days.

Meanwhile, we are in the planting season in the country’s food basket zones. Covid-19 is slowing us down here. Going forward, we need a clear plan on how to secure agriculture and food in the face of Covid-19. We need clear proactive contingency measures, with regard to such essentials as fertiliser and seeds, access to agricultural credit and even extension services. Equally important is the need for pesticides and acaricides. The supply chain for agricultural essentials should meanwhile not be compromised.

The emerging conditions are also hurting Kenyans at the individual domestic front. Some degree of travelling remains inevitable, regardless that the country is shutting down. People must still travel to find food. They need to find healthcare and to find other essentials. The necessary measures that have been introduced to minimise the chances of spreading the virus through public transport come with challenges. One of these is cost, both for the commuter and the owner of the transport. There is need to look at taxation on petroleum products afresh, in order to give Kenyans some level of relief. 

On another level, citizens also need access to water, both for health purposes and as an essential nutritional need. In the same docket are steady supplies of electricity, and paraffin – for cooking purposes. There is also need for safety nets for tenants and landlords alike. A crisis law may need to be urgently enacted for this purpose.

You cannot fight a virus if you are malnourished and your immunity system is compromised. Malnutrition leads to compromised immunity, among other challenges. We have children and elders who are malnourished. These are some of the most exposed populations. A proper nourishment support programme for these populations is of the essence.

Reflecting on the genesis and spread of the virus, it is morally sound to acknowledge that Covid-19 began from China, to the very best of everyone’s knowledge. It is also true that as we face debt repayment challenges as a nation, our largest creditor is China.

China has a moral obligation to accede to a fresh look at Kenya’s debt portfolio. An engagement with Kenya’s Treasury is of the greatest essence. Some of these repayments are now either due, or are soon falling due. China must open up avenues for interest waivers, debt restructuring and deferring of some of the loan repayments. 

The writer is the ANC party leader