[Jonah Onyango, Standard]Kenya is set to abandon the current Sh9 trillion legal ceiling of debt issuance and revert to one that is pegged on the gross domestic product (GDP). The IMF said Kenyan authorities have proposed an amendment to the Public Finance Management Regulations to replace the current nominal legal ceiling on debt issuance currently capped at Sh9 trillion. It had been reported that Treasury intended to ask the National Assembly to raise the ceiling to Sh12 trillion. Kenya’s debt as at end of March stood at Sh7.3 trillion. With the country expected to borrow about Sh1 trillion in the financial year 2021/22, the Sh9 trillion ceiling will be surpassed.

Source: Standard Digital June 29, 2021 04:52 UTC