Treasury Cabinet Secretary Ukur Yatani insists that Kenya’s public debt is still sustainable and there is still room for borrowing more.
Speaking on Friday, CS Yatani said this allows the government to borrow Sh1 trillion for the 2020/2021 financial year, which will push the country’s total domestic and foreign debt to Sh7.7 trillion.
“Kenya’s debt is sustainable, we are not feeling any distress. With revenue falling behind our projections and given the challenges of Covid-19 … as a responsible country, we have the leeway to borrow and Kenya has never defaulted on any loan in history,” said Yatani during the signing of a grant aid with Japan.
Yatani further refuted claims that Kenya is being charged high interest rates on loans it took in the recent past. He clarified that Kenya went for concessional loans due to low-interest rates and longer repayment periods as opposed to commercial loans, which are expensive.
“For over a year now Kenya has not borrowed a commercial loan. We know the danger; the high interest rates, shorter maturity, and the pressure on our exchequer to service it,” he said.
Although Kenya’s debt remains below International Monetary Fund (IMF) and World Bank debt sustainability assessment (DSA) threshold of 74 percent of GDP, there have been fears it could sink the country into a financial crisis.
Kenya’s public debt stood at Sh6.6 trillion in May this year but the figure is expected to rise once the funds the government borrowed to cushion the economy from the effects of the Covid-19 pandemic are factored in.
Kukopa harusi kulipa matanga.
Kukopa harusi kulipa matanga.
Just because you can borrow…
Just because you can borrow does not mean you should!!!
No stress now because…
No stress now because kenyans have not started really paying. So far all we have seen is recycling of debts by borrowing. This new borrowing ceiling is so that the current loans can be recycled into new loans which are a higher interest rate.
Living beyond our means with…
Living beyond our means with most of the money ending in UHURUS and GOONS pockets.
WAKENYA tutaamka lini??
Why can’t Kenyans start a…
Why can’t Kenyans start a rebellion today?Let us follow Mali where Keira is being haunted to FACE THE FIRING SQUAD for looting/corruption.These thugs should not take another loan for Raila referendum,salaries and looting purposes again.Jamaa ata hana haya.Anaongea mambo ya kukopa baada ya Uhuru kuwaongoza kwa wizi wa COVIDGATE,shs43b.
I agree with you. But there…
I agree with you. But there’s something about us called fear.
JOMO instilled alot of it and then MOI perfected it.
Now the rest of our leaders are from the same school of thought.
Something else, before election agreements are done and sealed.
JOMO STOLE, JARAMOGI,MOI,KIBAKI and his TEAM and now UHURU RUTO…
What we haven’t seen are all the above being charged in a court of law.
The only people who people who tried were OCHUKA AND THEM,through a coup.
KENYANS NEED TO HIT THE STREETS THE WAY OTHER NATIONS ARE DOING IF THEY WANT BETTER LIVES FOR THEIR KIDS. REVOLUTIONS CAN BE PEACEFUL, BUT ALOT OF BLOOD WILL BE SPILLED COZ UHURU AND THEM WANT TO HOLD ON TO POWER.
LOOK AT RAILA ,ORENGO,MUITE, they fought for constitution reforms, but got bought…WHAT WERE ARE SEEING NOW AS IN POLITICAL PARTIES IS JUST KANU UNDER DIFFERENT NAMES.
REVOLUTION IS WHAT KENYA NEED.
CHANGE NEEDS TO COME ,BY THE BALLOT OR THE BULLET OR BY THE BIBLE OR THE GUN.
Thieves of Eurobond 1,2 &3…
Thieves of Eurobond 1,2 &3 include:
1. QNB Capital (Qatar National Bank) – Ali Rashid Al-Mohannadi
2. JP Morgan : Paul Njaga
3. Barclays : Jeremy Awori
4. Standard Bank: Kariuki Ngari
They are the same people who are planning ksh 1 Trillion theft.
Those are also banks that are aiding and abetting terrorists.
How exactly will those debts…
How exactly will those debts be repaid.How much of China’s debt have we repaid before they colonies us for real.Who made this person an expert on how much debt Kenya can sustain