The policy also entrenches the Public Debt Management Office (PDMO) responsible for day-today operations on public debt. The National Treasury will institute a recovery mechanism for any on-lent or guaranteed debt in the event of default by any entity. This is the first formal document to manage public debt in the country, hence, a departure from the ad hoc public debt policy pronouncements. Even so, with the policy paving way for counties to borrow, taxpayers would be exposed to an ever-increasing debt stock. Public debt stood at Sh6.7 trillion as of June 30 - almost six times its value of Sh1.2 trillion 10 years ago.

Source: The Star July 27, 2020 02:03 UTC