Kenya ‘will no longer comply’ with signed EAC agreement on debt limit
Kenya's National Treasury in Nairobi. There has been a rise in government borrowing since President Uhuru Kenyatta came to power in 2013— a jump that some politicians and economists say is saddling future generations with too much debt. FILE PHOTO | NMG
What you need to know:
Kenya’s higher level of debt have raised fiscal vulnerabilities and increased interest payments on public debt to nearly 20 per cent of collected revenues.
According to Treasury, public debt service-to-revenue ratio increased from 16.5 per cent in 2012, to 35.8 per cent in 2017, 30.5 per cent in 2018 and is expected to increase to 33.4 per cent in 2019. The IMF threshold is 30 per cent.
Kenya’s debt has changed from being productive to unproductive thereby creating a net burden on the country in increased taxation.
