Concerns As Kenya's Public Debt Crosses The Record Sh4.5 Trillion Mark - Daily Updates

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Concerns As Kenya's Public Debt Crosses The Record Sh4.5 Trillion Mark


The National Treasury Building in Nairobi Concerns As Kenya's Public Debt Crosses The Record Sh4.5 Trillion Mark
Kenya's public debt for the first time in history has crossed the SH4.5 Trillion mark raising concerns on how the government plans to repay the accumulating debt which continues to grow each financial year.
Uhuru Kenyatta's government has invested heavily on infrastructure with railways, highways , airports and electricity supply being focused on. All these depend partially or fully on loans procured by the Jubilee government.
In its latest public debt report, Treasury said that the gross public debt increased by Sh746.7 billion from Sh3.82 trillion by the end of December 2016 to Sh4.57 trillion by the end of December 2017.
51.9 per cent of these borrowings are foreign and 48.9 percent are domestic. These figures are not inclusive of recent borrowings such as the Sh210 billion Eurobond procured last week.
The government through Treasury has attributed this rise in public debt to external debts arising from exchange rates fluctuations and disbursements from external loans during the period.
The rate at which the public debt has been increasing is way higher than revenue growth thus widening the gap and frustrating government's ability to repay the loans.
Revenue collection has also fallen short of the target by close to Sh70 billion by the end of December 2017.
Many experts have advised the government to go slow on the loans but the government has largely remained adamant saying the country can bear the debt load.
Uhuru Kenyatta has reiterated that the country has never come close to the point of defaulting on its loans thus no cause for alarm. He has been on record saying that for the country to move forward there is need to develop infrastructure that will spearhead developments in other key areas of the economy.

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