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Gov’t drafts policy enabling Kenya borrow on shilling terms

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Treasury is working on a policy that will see Kenya access international credit using the Kenyan shilling as the currency.

National Treasury Cabinet Secretary Henry Rotich has said this will shield the country from recurring international currencies volatility.

He spoke during the ongoing Africa Economic research conference.

In the last ten years, external loans have been rising faster than domestic debt thereby exposing Kenya to risks related to currency as well as adverse changes in global yields.

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Kenya’s debt now stands at 5.3 trillion shillings, with analysts warning that, the country is hurtling towards a serious debt distress position.

Currently Kenya’s debt is dominated by the US dollar, Japanese Yen and the Euro.

Speaking during the ongoing Africa Economic research conference, Rotich further said the national treasury has set up a public investment management to help in managing public projects from conceptualization to execution.

Economic researchers raised concern with Africa debt position arguing that it is becoming a crisis.

United Nations Economic Commission for Africa Secretary Vera Sangwe urged African governments to ensure prudent management of public funds to avoid wastage.

The meeting brings together thought leaders from around the continent to deliberate on various economic issues facing the African continent.

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