Author: Lucianne Limo
Date: January 23, 2007
Type of article: Headline
Source: The East African Standard http://www.eastandard.net/archives/index.php?mnu=details&id=1143963966&catid=4

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Kenya is reeling under a Sh750 billion debt Sh430 million of it owed to foreign donors.

As a result, each Kenyan carries a debt tag of approximately Sh25,000.

Nobel Peace Prize winner Prof Wangari Maathai said the country has so far repaid over $51 billion originally borrowed from external creditors.

Maathai, the Tetu MP, who was delivering a keynote address at the World Social Forum On Illegitimate Debt Dialogue, said the debts were suspect.

She disclosed that in the 2005/6 Budget, the Ministry of Finance proposed spending Sh112 billion for debt servicing. The current MPs, she disclosed, voted down the opening of the debt registry to public scrutiny. She said 8 million people in Africa die every year from diseases that could be prevented.

The slum dwellers, she said are among those who die because they cannot access medicine since the governments are busy paying debts.

The Tetu legislator said the debt crisis remains one of the key obstacles on the African continent. "Despite the improved democratization process and improved governance in many countries, the debt burden continues to impede the empowerment of people on reduction of poverty in many countries of our developing nations," she said. She said the international financial institutions were not keen on cancelling the debts because they were the ones who are benefiting.

"We know why this debts are not cancelled because these donors are making money out of the debts," she said. "It is no secret that a number of the loans given to many dictatorial, unaccountable and irresponsible leaders in African countries were never intended to be for the benefit of the people," she said.

She said the loans were used to oppress the people, strengthen the ruling and cooperating elites and exploit resources at the expense of the health of the environment and the welfare of the people. "It is ironic, indeed inexcusable that such a rich region as Africa, should have the dubious reputation of being the poorest," Maathai stated. She said while there has been an increased debate on the sustainability of debt, official discourse on debt has never allowed any discussion on the legitimacy of debt.

"I am glad that this seminar is addressing the issue of illegitimacy. We start with the premise that loans given to irresponsible projects or illegitimate regimes should not be the plight of the people to repay," she said.

She added that illegitimate debt was not only about dealing with irresponsible lending of the past, but about ensuring more responsible lending in the future.

Maathai said people should question the huge debts by poor countries and its legitimacy in order to highlight the issues of responsibility, accountability, poverty and justice.

Maathai said the churches also play a key role by raising the illegitimate debt and credit responsibility both within their countries and at regional and global level.

"Churches have the authority and the numbers to call governments and financial institutions to account for their actions."

She lauded the Norwegian government for canceling without questioning the debt of Ecuador, Jamaica, Peru, Egypt and Sierra Leone claiming the debt was of a failed development policy. "Other credit governments should follow Norway’s lead in recognising creditor responsibility."