“The gross public debt increased by Sh746.7 billion, from Sh3.82 trillion as at end of December 2016 to Sh4.57 trillion by December 31, 2017,” says the Treasury in its latest public debt report. “The overall increase is attributed to increased external debt mainly arising from exchange rate fluctuations and, disbursements from external loans debt during the period,” says the Treasury. The ability to generate and grow tax revenue is a strong indicator of future ability to repay debt. “Ordinary revenue collection was Sh656.9 billion against a target of Sh701.7 billion an under performance of Sh44.8 billion,” says Treasury. The ballooning public debt has seen Kenya come under increasing pressure to slow down its uptake of loans, but the warnings have so far gone unheeded.

Source: Daily Nation February 26, 2018 18:33 UTC