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Kenyan MPs vote to increase national debt limit to KSh 9 trillion ▷ Kenya News

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– Kenya’s high appetite for heavy borrowing has seen the country cross the 50% of GDP mark raising concerns over the ability to repay loans

– In April this year, CBK Governor Patrick Njoroge warned the treasury against additional borrowing urging it to find alternative means

– Kenya’s debt levels have tripled from KSh 1.8 trillion in June 2013 to KSh 5.89 trillion as of June this year

Kenya’s National Assembly voted to increase the national debt limit to KSh 9 trillion on Thursday, October 9.

The raising of the debt ceiling was done by the Members of Parliament despite opposition from the civil society and donors on the sustainability of the increasing debt against a struggling economy.

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A file photo of the National Assembly in session. Photo: Citizen TV.
Source: UGC

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The National Treasury in a statement on Thursday, October 9, hailed the proposed limit as a solution to the country’s soaring debt.

“The KSh 9 trillion cap is consistent with projections in the 2019 budget outlook paper that estimates public debt at KSh 8.7 trillion in June 2024,” the National Treasury said.

Kenyan MPs vote to increase national debt limit to KSh 9 trillion

The National Treasury hailed the proposed debt limit as a solution to the country’s soaring debt. Photo: TUKO.co.ke.
Source: Original

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During the session, only two MPs, Patrick Musimba (Kibwezi East) and Mohamud Mohamed (Wajir South) opposed the ceiling but their concerns were not addressed.

“This country requires to be salvaged from loans,” said the Wajir South MP said as he dismissed Kenya’s comparison to major powers like Japan in terms of debt levels.

Kenya’s debt levels have tripled from KSh 1.8 trillion in June 2013 to KSh 5.89 trillion as of June this year.

The National Treasury expects it to rise to KSh 6.4 trillion by June 2020.

Kenya’s high appetite for heavy borrowing has now seen country cross the 50% of GDP mark raising concerns over the ability to repay loans.

On Wednesday, April 3, Central Bank Governor Patrick Njoroge warned the treasury against additional borrowing urging the government to find alternative ways of financing the budget.

Do you have an inspirational story you would like us to publish? Please reach us through news@tuko.co.ke or WhatsApp: 0732482690 and Telegram: Tuko news.

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