Economist David Ndii says President Ruto may consider a handshake with Azimio la Umoja One Kenya coalition leader Raila Odinga in order to secure stability.
Ndii, who is the Chairperson of Ruto’s Council of Economic Advisors, defended the delays in the payment of salaries for civil servants and the recent appointment of 50 Chief Administrative Secretaries (CASs).
In an engagement with Twitter users on Saturday, Ndii noted that the first obligation of a government is survival and political stability and the “more the dynasties foment destabilization the more we will have to spend on political capital.”
“If push comes to shove handshake is always an option. How much do you think that will cost?” he posed.
Justifying the delays in the disbursement of salaries for civil servants, Ndii indicated that 60% of the revenue collected was going towards servicing debts.
“…It is reported every other day that that debt service is consuming 60 percent plus of revenue. Liquidity crunches come with territory. When maturities bunch up, or revenue falls short, or markets shift, something has to give…salaries or default?” he asked.
He added, “Foreign debt is not the issue. I am talking about weekly maturities of domestic debt held by your banks and pension funds (80% of debt service) which would you rather have, a haircut on your bank deposits or delayed payments?”