Worry as interest payments on China debt rise to Sh28 billionKenya’s interest payments to China have increased fivefold in the current financial year, painting a worrying trend of the country’s debt sustainability levels. Of this, Sh24 billion went to settling interest on loans owed to the Asian country alone. This is a worrying trend considering that the country’s revenue growth has stagnated, forcing the Government to burden taxpayers with more levies to meet its mounting debt obligation. Treasury Cabinet Secretary Henry Rotich has, however, painted a rosy picture of the country’s debt position, insisting that the Government’s fiscal strategy remains prudent. Currently, revenue as a percentage of GDP remains stagnant at 18.3 per cent even as Treasury projects Kenya Revenue Authority’s revenue targets to hit Sh3 trillion in the next three years.

Source: Standard Digital June 18, 2019 05:04 UTC