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
Kenya has breached the East Africa Community ceiling on debt accumulation, as the national Treasury borrows heavily to finance government operations amid falling revenue collection and poor economic performance.
A unanimous vote by the country’s lawmakers, about two weeks ago, to increase the debt ceiling to Ksh9 trillion ($90 billion) in the current 2019/2020 fiscal year has compromised the government’s bid to comply with the region’s debt target that is equivalent to 50 per cent of the GDP and weakened the country’s debt sustainability indicators.
