Floating of Sh150 billion infrastructure bond at once will crowd out the private sector, experts have cautioned. On Tuesday, President Uhuru Kenyatta announced that the government plans to issue Sh150 billion note which will be partially used to clear pending bills. Experts are however divided on the government's ability to raise the amount at once in local bond and effects to the country's economy. Economist Reginald Kadzutu told the Star that raising Sh150 billion in one issue will crowd out private sector, so much for interest rate cap removal. ''I'm not sure banks have started lending to the private sector because we swapped a Parliamentary diktat for a CBK diktat.

Source: The Star January 16, 2020 13:52 UTC