Economy

Kenya spending 64% of tax collected to finance loans

It now evident that the current debt in Kenya has become a burden, a clearer revelation being on Wednesday when the Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge admitted that the current debt situation is a matter of concern.

His revelation coincides with a report by the Controller of Budget (COB) Margaret Nyakango released Thursday which indicated the country is spending 64.1 percent of tax revenue to finance public debt.

This, according to COB, has left less funds towards other budget votes.

In August this year for example, the National Treasury borrowed Treasury Bonds (T-Bills) worth over Ksh.15 billion locally to repay foreign debts of which 98 percent of it was towards syndicated loans repayment.

The COB recommended renegotiating debt repayment agreements and slowing down of borrowing so as to ensure tax revenue collected is geared towards financing other components of the budget which include; Recurrent, Development, Pensions and County Governments.

More to follow…

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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