World Bank faults Treasury on its debt strategy
SEE ALSO :Why Magufuli prefers Chinese aidDebt experts The World Bank regretted that without adequate staff and clear leadership and accountability, the office faced challenges in carrying out its work. It also noted that Treasury had been dragging its feet, with the implementation of reforms to strengthen the debt strategy pending for several years. Treasury recently announced that it was recruiting debt management experts who would provide guidance in determining borrowing ceilings for national and county governments. The global lender also blamed the country’s poor performance on debt management on paying lip service to its framework on prudent debt management. “Another factor was that in November 2016, the Government of Kenya published the Medium-Term Debt Management Strategy for 2017/2018 to 2019/2020. Although on paper the Medium-Term Debt Management Strategy provides a framework for prudent debt management, it is not clear that it is being followed, considering the sovereign debt trajectory that has kept increasing at a sustained pace over the past years,” reads the report titled Country Policy and Institutional Assessment 2017. It comes at a time the country’s growing public debt, currently estimated at Sh4.8 trillion, has come under sharp focus.
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