In the broad scheme of things, the current administration has given dedicated attention to infrastructure development, ranging from the SGR to housing and electricity connectivity. And here is the catch: All the mega infrastructure development projects are funded through borrowing and always at exorbitant interest rates. Cumulatively, the country has a debt portfolio of Sh6 trillion, twice the national budget and 52.2 per cent of GDP. The challenge with the rising debt regime is that it creates a vicious cycle of poverty. Despite this depressing scenario, Parliament recently raised the debt cap incredibly to Sh9 trillion, opening the floodgates for borrowing.

Source: Daily Nation October 23, 2019 21:56 UTC