In January, the country received a debt repayment holiday of Sh78 billion from some bilateral partners, signalling a liquidity crisis as the government grapples with Sh7.3 trillion in debt. All this was aimed at keeping the country’s debt sustainable. Some of the ambitious projects would come to haunt the administration in the form of increased debt service costs. In the financial year ending June 2019, for every Sh100 that the country earned from taxes, Sh57 went into servicing debt. Increased reliance on commercial loans has seen the country’s spending on interest payments spike.

Source: Standard Digital February 16, 2021 19:31 UTC