By PATRICK ALUSHULAMore by this AuthorFormer senior executive adviser in the Office of President Uhuru Kenyatta now says Kenya overcommitted itself to debt and may struggle to curb borrowing spree in the wake of sluggish growth in tax revenues. “We borrowed so much and our headroom for debt has narrowed … there was an over-commitment to capital borrowing and that has left us with narrow headroom for debt,” said Dr Wagacha. “If you look at 2011/2012, we were spending only about 11 per cent of GDP (Gross Domestic Product) directly to repay debt. The split between external and domestic borrowing in the total debt stock is about 51:49. However, reflecting higher domestic interest rates, debt servicing charges on the domestic debt stock is about three times higher than from the external debt stock, according to World Bank in the October 2018 Economic Update report.

Source: Daily Nation February 05, 2019 09:22 UTC