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…
