In the latest report by the Central Bank, the debt portfolio hit Sh6.6 trillion in May — more than double the annual expenditure of Sh2.8 trillion. In 2013, when the Jubilee administration ascended to power, the debt portfolio was Sh1.89 trillion, representing 51.7 per cent of GDP. That is what leads to the treadmill of debt: Borrowing ceaselessly to pay debts. A case in point is the Galana-Kulalu irrigation project in Coast that was started with donor cash but collapsed. A lot of donor money is misappropriated, which at times, has put the government at loggerheads with funders.

Source: Daily Nation July 21, 2020 21:00 UTC