Government’s Big 4 Agenda Likely to Increase Debt to KES. 1 Trillion

By Soko Directory Team / Published April 23, 2018 | 10:01 am



Debt SGR

The pledge by China to support Kenya’s Big 4 agenda for the next five years could just a recipe for Kenya’s financial beating as the country is looking at a debt that will clock 1 trillion shillings by 2022.

The funds from the Asian economic giant is aimed at facilitating better standards of living for all Kenyans; such a bittersweet idea.

China is currently among the top bilateral donors with a cumulative development aid to Kenya standing at 730 billion shillings including grants amounting to 27.9 billion shillings and loans of 702.1 billion shillings.

According to Kamau Thugge, the Principal Secretary in the Ministry of National Treasury and Planning, the big four agenda is costly and the expectation is that some of the funds will come from the government and some from the private sector.

“We are in the process of strengthening our public-private partnership. The government is currently using Chinese credit to construct the Nairobi to Naivasha SGR project, the construction of Nairobi Inland Container Deport yard, Kenyatta University Teaching and Referral Hospital, construction of Kibwezi-Kitui road among other projects,” Thugge said.

The Big Four Agenda was launched in December 2017 by President Uhuru Kenyatta and is focused on addressing many issues affecting Kenyans today.

The Big 4 seeks to increase the share of the manufacturing sector to 15 percent of GDP, guarantee that all Kenyans enjoy food security and improved nutrition by 2022, realize universal health coverage, and provide not less than 500,000 affordable housing units.

Apparently, about 35 Chinese firms have expressed their interests in building the affordable housing. The first phase is already underway.

To further drive the Agenda, the government is looking at maintaining inflation rate within the band of 2.5 percent on either side of the 5 percent target.

This comes as it slows down ministerial expenditure and at the same time implement several initiatives to boost domestic revenue mobilization, strengthening the tax administration by funding it more and expansion of the tax base said The Star.

Other directives put in place to increase revenue to facilitate the government’s Big 4 Agenda include the reduction of state deficit by 3 percent to the GDP by 2021/2022 financial year from the current 9.1 percent of GDP and the nominal public debt on net basis targeted to reduce from the preliminary 51.9 percent of GDP to 43.2 percent in 2022.




About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2024
  • January 2024 (238)
  • February 2024 (227)
  • March 2024 (190)
  • April 2024 (133)
  • May 2024 (157)
  • June 2024 (65)
  • 2023
  • January 2023 (182)
  • February 2023 (203)
  • March 2023 (322)
  • April 2023 (298)
  • May 2023 (268)
  • June 2023 (214)
  • July 2023 (212)
  • August 2023 (257)
  • September 2023 (237)
  • October 2023 (266)
  • November 2023 (286)
  • December 2023 (177)
  • 2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (358)
  • April 2022 (292)
  • May 2022 (271)
  • June 2022 (232)
  • July 2022 (278)
  • August 2022 (253)
  • September 2022 (246)
  • October 2022 (196)
  • November 2022 (232)
  • December 2022 (167)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (272)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950