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Players in private sector want government borrowing checked

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Public debt is the biggest threat to National Security- Hon. Alex Kosgey, Mp. Emgwen.

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Parliament should enact laws to further regulate government borrowing and spending to lower Kenya’s deficit.

Kenya National Chamber of Commerce and Industry (KNCCI) national vice chair James Mureu and Emgwen Member of Parliament Alex Kosgey have warned that increased government borrowing will in the long run affect the economy since a huge part of the country’s revenue will be used to repay loans instead of financing development projects.

The national debt has surpassed the 5 trillion shillings mark representing a 57.10 percent to the country’s GDP.

However, the government maintains that the loans are manageable and have been used for funding infrastructure projects to spur economic growth.

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However, players in the private sector want the government borrowing checked, noting that the debts are likely to negatively affect the country’s economy in future.

They want parliament’s mandate expanded to include setting debt ceilings and source of the loans.

Private sector players also want the government to prioritize development of infrastructure projects that bring value within a short period and minimize wastage within the public service.

They called on the National Treasury  to regularly publish debt management strategies and utilization of funds to enhance transparency and accountability.

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