By PETER MBURUMore by this AuthorKenya risks defaulting on its debt obligations in a decade if the current appetite for borrowing remains unchecked, a think tank has warned. A survey by the Institute of Economic Affairs (IEA) revealed that if the country’s appetite for borrowing continues, it risks defaulting on repayment in 10 years. Of the money used to cater for recurrent expenditure by the national government in the financial year 2013/14, 44 per cent was used to service debts. CHINESE LOANSIn 2018/19 that amount rose to 58 per cent, as money used to pay wages shrank by seven per cent. The organisation’s research also pointed out that Kenya’s ability to service its debts as compared to the revenue ratio has been declining since 2017.

Source: Daily Nation April 25, 2019 07:24 UTC