upepo
Elder Lister
The Railway Development Levy Fund has collected KSh 314 billion since its inception. Yet we are told that the government will borrow KSh 390 billion to extend the SGR.
If this money were collected and invested in government securities at an average interest rate of 12%, the Fund would by now be worth KSh 577 billion, as shown in the calculations below. We wouldn't need to borrow a shilling to take the SGR to Malaba.
Prudent financial management can be quite rewarding. By now, the fund would be earning annual interest of about KSh 58 billion. This would total to KSh 94 billion when you add the current annual collections of around KSh 36 billion. This is a huge amount of money. It would not only extend the current SGR to the border but would build more kilometres of rail countrywide.
As of June 2024, the Fund had a balance of KSh 64 billion. Where did all the other collections go? Why is this money not being invested to generate more revenue?
When you ask such questions and make suggestions for better management of public funds, regime bots are quick to insult you, calling you a prophet of doom. This financial mismanagement and a compliant citizenry are exactly what cause the collapse of economies. We are not special!