In October, former Chief Justice Willy Mutunga renewed calls for an independent public inquiry into how the Sh5.04 trillion debt has been accumulated and the value it has had on the economy in terms of growing national wealth — gross domestic product.
The government has denied reports by a section of the media that the new loan it is planning to borrow from the international markets would worsen the country's public debt which has already risen to an alarming level.
Kenya is in talks with lenders to roll over a $760 million (Sh78.04 billion) syndicated loan this fiscal year and lengthen its maturity in order to make debt repayments more manageable, a senior Treasury official said yesterday.
As was earlier reported by TUKO.co.ke, the national government had struck fresh deal with foreign lenders to borrow more billions to be channeled towards construction of roads, improving agriculture and access to energy and bailing out cash-strapp...
Treasury will borrow Sh100 billion more from the domestic market in the next financial year as it cuts new foreign loans in a shift that looks set to lock out households and businesses from bank credit.
So far, the government owes its creditors Sh5.04 trillion — more than one and a half times its budgeted expenditure for the current financial year.
A section of Jubilee party Members of Parliament have voiced concerns over the rising national debt after reports emerged the government had secured more loans from foreign lenders.
Mr Thugge’s position that there was no such loan negotiation deepens the questionable circumstances under which government officials purportedly committed to borrow such a colossal sum of money for security years before the design of the proposed ...
In July, during Moody’s fifth Annual East Africa Summit in Nairobi, Central Bank of Kenya (CBK) Governor Patrick Njoroge admitted that the Government had run out of headroom for more debt uptake.
Due to Nigeria’s debt condition, external borrowing in the 1995 will focus on concessional funds which attract low interest rates and are repayable over long periods such as IDA, ADF and soft bilateral credits.
It noted then that the current challenges of declining revenues, rising debt profile and expanding budget deficits were occasioned by gregarious external borrowing during the so-called boom years.
The Government is further seeking investments totalling Sh290 billion to upgrade Kenya Power’s electricity distribution network and Sh900 million to develop mini-grids and isolated solar plants in marginalised counties.
The rise in bad loans continued despite recent release of official data showing that the economy grew by six per cent in the first half of the year, affirming the belief that heavy public spending on infrastructure is driving the growth.
Ten struggling parastatals gobbled up Sh14 billion of taxpayers’ money in the past financial year, widening a national black hole that should have been fixed through prior proposals.
He warned that while inflation eased marginally in October, with the impending rate hike by the U.S. Federal Reserve, Nigeria, like many other emerging markets, would likely experience an acceleration of capital outflows, hence everybody should be...