Debt Too Big To Handle: Treasury Now Seeks ‘Experts’ to Manage it

By Soko Directory Team / August 10, 2018



Debt

Kenya’s public debt continues to balloon, further putting much pressure on the already heavily-taxed Kenyans as the government tries to pay back.

At the beginning of 2018, Kenya’s debt hit a 5 trillion shilling mark, more than 60 percent of the country’s Gross Domestic Product (GDP) as the Treasury borrowing appetite continued to roar to ‘greater heights.’

The World Bank and the International Monetary Fund had raised concerns over Kenya’s soaring appetite to borrow which the two bodies warned, that will be unmanageable. The national treasury dismissed the ‘concerns’ and said that the country was ‘still within a borrowing range.’

It has now emerged that the debt is too high until the Treasury has opted to hire debt management experts that “will provide guidance in determining borrowing ceilings for national and county governments.”

The National Treasury is currently seeking 20 debt management experts in what some economic experts such as David Ndii have lightly termed as “seeking receiver managers” to handle a country going down in debts.

The country’s public debt hit the 5 trillion mark in June 2018. The debt has grown from 0.5 trillion shillings in 1999 to 5 trillion shillings with more than 60 percent of the borrowing taking place during President Uhuru Kenyatta’s term.

A big junk of Kenya’s debt is external, standing at 2.56 trillion shillings as at the end of February 2018 with domestic debt standing at 2.448 trillion shillings as at the end of May 2018 bring the total to 5.011 trillion shillings.

China is the largest lender to Kenya, accounting for 72 percent of all foreign debts in Kenya. China’s loans to Kenya increased from 453 billion shillings in 2014 to 534 billion shillings at the end of March 2018.

One of the largest projects that have received funding from China includes the Standard Gauge Railway (SGR) which Kenyans are already paying close to one billion shillings every month for its maintenance.

 



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








Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (220)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (240)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (74)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (236)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 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