Kenya’s debt ceiling shot to Ksh.10 trillion Tuesday following approval by the Senate.
The National Treasury Cabinet Secretary Ukur Yatani tabled a proposal before the National Assembly on May 31 and Members of Parliament approved the request on June 7.
Kenya has been operating under a Ksh.9 trillion ceiling since November 7, 2019 and a nod by 27 Senators against three who voted against, creates more room for borrowing.
The Ksh.9 trillion was to sustain the country until 2024 and legislators who supported the bill argued that unforeseeable conditions like the Ukraine-Russia conflict left the country no choice but to raise the ceiling.
“The National Treasury committed in 2019 that the debt ceiling of Ksh.9 trillion will be enough until 2024. However a number of unfavourable events have taken place that have led to the depression of the ceiling,” said Senate’s Delegated Legislation Committee Mwinyi Haji Mohamed.
Lifting of the ceiling would allow the government to execute the 2022/23 Ksk.3.3 trillion budget for a fiscal year starting July 1, 2022.
Before the nine trillion ceiling, Treasury was operating on a Ksh.6 trillion debt ceiling mark.