Public debt, according to latest Treasury reports, stood at Sh8.41 trillion as of August 2020 against the ceiling of Sh9 trillion. The stock of public debt accounts for Sh7.06 trillion – 69.2 per cent of gross domestic product, while there is an undisbursed debt of Sh1.35 trillion. Already, the public debt sustainability indicators – as per the medium-term debt management strategy, illustrate that Kenya faces a high risk of debt distress. “We borrow to support the budget because revenue is either limited or not there,” Yatani told the Homa Bay MP Gladys Wanga-led committee. Also in the works is to operationalise the Sinking Fund for the purposes of redemption of public debt by February 2021 and issuance of sovereign green bonds.

Source: The Star December 12, 2020 05:03 UTC