Mudavadi warns Treasury officials over debt ceiling breach » Capital News

NAIROBI, Kenya, Jan 27 – Amani National Congress (ANC) leader Musalia Mudavadi has warned National Treasury officials against an alleged violation of debt ceiling regulations particularly during the transition period.

Mudavadi, who once served as Treasury Minister, claimed the public debt had risen to Sh11 trillion surpassing the Sh9 trillion cap set by the National Assembly.

“We want the National Treasury CS to explain to us whether the Sh9 trillion debt ceiling passed by the Parliament has been surpassed without going back to Parliament for approval. According to statistics the debt is already at Sh11 trillion,” he quipped.

“Transition time is a very dangerous time in public office. Be careful when presented with contracts and documents to sign. Be dedicated public servants. Do not enter into any obligation that will haunt you many years to come,” the ANC leader warned on Wednesday.

He was addressing a roadside public rally in Eldama Ravine in the company of Deputy President William Ruto with whom he has joined forces with in a bid to craft a winning ticket in the August 9 presidential election.

Kenya last raised its debt ceiling in 2019 from Sh6 trillion to Sh9 trillion.

The House is yet to act on a request made by the National Treasury in February 2021 to raise the ceiling to Sh20 trillion.

“We don’t want debt to rise but Kenyans want development. We will look at the Treasury proposals and if it is for raising money for development, we have no problem even if they want the ceiling set at Sh20 trillion,” House Majority Leader Amos Kimunya told lawmakers while presenting the request.

“We will look at the merit and demerits on what the budget needs to adhere and not the limit or ceiling. I have been there (at the National Treasury) and I know,” he said.

The National Treasury did not however cite the proposed cap in the Medium-Term Debt Management Strategy (2021).