The National Treasury formulates a draft Debt Management Policy
The National Treasury has put out a draft debt management policy that will require the Cabinet Secretary to the National Treasury to submit a medium-term debt strategy to parliament and the commission on revenue allocation
Once a year by 15th February.
Under the draft guidelines, the National Treasury will also be required to publish and publicize a report of all loans made to the National Government, National Government Entities and County Governments after every 4 months.
Also proposed in the draft policy is that commercial loans will be used only to finance projects with expected revenue streams/infrastructure projects and not socio-economic projects.
Socio-economic projects will be funded by concessional loans as proposed by the draft debt policy.
At the same time, creditors dealing with all levels of government for the very first time will be required to fill Know Your Customer (KYC) and due diligence form to be issued by the public debt management office.
The draft policy has been floated at a time when concern is mounting over Kenya’s growing volume of public debt which currently stands at 6 trillion shillings.