Jagwar

Kwame Owino, CEO of the Institute of Economic Affairs, raises concerns about Kenya's weak consumer demand and infrastructure securitization: — Kenya still has a negative output gap, suggesting the economy could grow faster. Owino argues that high deductions from workers' incomes are suppressing consumption and employment. — He questions whether the economic benefits of building an additional 200K–300K affordable homes annually justify the reduction in disposable income caused by the housing levy. — Owino acknowledges the rationale for infrastructure securitization but questions the lack of consolidated disclosures on how much has been securitized, the proceeds raised and the obligations created. — He warns that securitizing future revenues, including the Road Maintenance Levy Fund, could compromise funding for future road maintenance. — He draws parallels with the SGR, arguing that major infrastructure projects have previously been promoted without sufficient disclosure of their financial risks. — His central concern is that securitization does not eliminate fiscal risk. It can merely transfer future obligations elsewhere, making transparency and accountability critical.