National rainbow coalition (NARC) Kenya party leader Martha Karua and renowned kenyan economist David Ndii have turned the heat on president Uhuru Kenyatta after details surfaced showing a huge blunder by the head of state.
In a report by the Business Daily, president Uhuru Kenyatta is said to have questioned why the government agency - Kenya airports authority (KAA) - was paying a whooping amount of 11milion monthly for a private company for Bus services.
Uhuru's stand made the government agency to cancel the contract with the private company which later moved to court seeking for compensation from the government for cancelation of the contract, causing taxpayers a huge amount of money in compensation.
However, as Martha Karua hit back at the report speculating that the whole scheme was a scam, economist David Ndii suggests that the order by the head of state was financially unwise.
He holds that the order meant that the investor would loose a whooping 200Million on the buses. He went ahead to enumerate other loses the investor would incur over the cancelation.
"Its not a scam. This was a stupid roadside declaration. The investor spent Sh200m on the buses. Cost of capital alone (interest + depreciation) is in the order of Sh7m a month. Operational cost would be another Sh2m leaving a profit of Sh2m a month which is a return of 20%," he said.
President Uhuru Kenyatta's adminstration has always been criticized by critics over perceived rampant wastage of public resources, unfeasible declarations and unnecessary and highly priced infrastructural projects.
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