Skip to content
Government and Policy

Each Kenyan To Owe Creditors Ksh 189,218 After Debt Ceiling

BY Juma · November 8, 2019 05:11 am

During the week, the Senate in Kenya gave the government a green light to borrow at will as long as the debt does not go beyond 9 trillion shillings.

The go-ahead by the Senate means Kenyans will soon be in more trouble than ever before in terms of the ever ballooning public debt.

The government of Kenya has already borrowed 6.5 trillion shillings. The majority of the loans were set to mature in the next 12 months meaning Kenya is already looking at a complete economic lockdown.

With the permission from the Senate, the National Treasury, which has already admitted that it is broke, now has room to borrow 2.5 trillion shillings more to hit the ceiling set at 9 trillion shillings.

In the just-concluded National Census, Kenya has about 47,564,296 people. Dividing this number with the ceiling of 9 trillion shillings, every Kenyans will soon owe at least 189,218 shillings.

china
The bulk of loans to Kenya come from China

 

The sad reality is the bulk of the loans that will be taken afresh will be used to pay off other loans that will have matured. It is like digging one hole to fill the other.

The Jubilee government has been blamed for going into a borrowing spree without putting in place the mechanisms to protect the borrowed funds given that the country loses more than 1 trillion shillings annually.

During the vote to set the debt ceiling at 9 trillion shillings, only 7 senators voted against the move. The senators who stood their ground and voted against the more are:

  1. Mutula Kilonzo Junior
  2. Moses Wetangula
  3. Boniface Kabaka
  4. Aaron Cheruiyot
  5. Samson Cheragei
  6. Mithika Linturi
  7. Enock Wambua

Both the World Bank and the International Monetary Fund (IMF) had raised their concerns about Kenya’s appetite for borrowing as well as the failure to minimize the wastage of public funds. During the week, however, the IMF hailed President Uhuru Kenyatta’s efforts to fight corruption.

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. (020) 528 0222 or Email: info@sokodirectory.com

Trending Stories
Government and Policy Kenya Is Struggling With Debt As Modest Revenue Is Collected With Limited Development Investment Steve Biko Wafula
Entrepreneur's Corner Kenyan Clients Don’t Care Whether You’re In the ICU: The Brutal Truth Of Entrepreneurship Soko Directory Team
Headlines Are The SACCOS The Infinite Money Glitch Of Kenya? Soko Directory Team
Government and Policy Saccos Clamp Down On Struggling Businesses, Recover Sh491 Million In A Ruthless Crackdown Soko Directory Team
Entrepreneur's Corner The Greatest Skill Everyone Should Master Is The Skill Of Knowing How To Manage Money Soko Directory Team
Related Articles
Government and Policy MACNUT Welcomes Court Ruling To Join Case On Raw Macadamia Export Policy Soko Directory Team
Government and Policy Kenyan Government To Launch 1,236 Projects In 34 Counties Soko Directory Team
Government and Policy TSC Revises Registration Requirements For Teachers Getrude Mathayo
Government and Policy Saccos Clamp Down On Struggling Businesses, Recover Sh491 Million In A Ruthless Crackdown Soko Directory Team
Government and Policy Kenya Is Struggling With Debt As Modest Revenue Is Collected With Limited Development Investment Steve Biko Wafula
Explore Soko Directory
Banking Blogging Commodity Watch Did you know Entertainment Entrepreneur's Corner Feature Government and Policy Headlines Investment Lifestyle Market News Money Opinion Press Releases Stock Watch Technology
Soko Directory Archives