Kenya's rising debt burden worrisome

NAIROBI: Today, we examine the economy, specifically, national debt and its implications. The raising of the national debt ceiling to Sh2.5 trillion (an equivalents of $28 billion) has far- reaching consequences for the economy. Never before has the Government borrowed so much money. In this year’s Budget Statement, the Treasury Cabinet secretary announced that repayment of debt owed to foreign entities shall exceed Sh400 billion.

This is more than the entire budget of the national government during former President Daniel arap Moi’s era. With the raising of the debt ceiling, the liability in servicing these debts will certainly double, putting pressure on the Treasury to raise more money through the Kenya Revenue Authority.