MPs want Kenya to renegotiate commercial loans to save on interests

The National Assembly Budget and Appropriation committee recommends that it is time for Kenya to renegotiate the terms of commercial loans to save on interest.

Committee Chair Kimani Ichung’wa says the debt crunch in Kenya makes financing the 2020/2021 budget a challenge.

Public debt management took center stage in the national assembly as the Budget estimates for the 2020/2021 financial year were debated.

The report by the National Assembly Budget and Appropriations Committee indicated that the debt levels of the country are nearly reaching unmanageable levels.

Legislators took issue with the financing model of the budget questioning Kenya’s capability to finance it.

Majority Leader Aden Duale said the budget is being prepared at a time when the economy is stressed and it ought to respond to the challenges of a crisis whose timeline is unknown.

Lawmakers said that as the country is experiencing high job losses, depressed revenue collection, the government ought to take a creative approach to ensure the economy rebounds.

The report by the National Assembly Budget and Appropriations Committee indicates that next financial year’s budget will be close to 3 trillion shillings with KRA tasked to collect 1.6 trillion shillings.