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Increased appetite for domestic debt by Government starves firms

A Kenyan worker laughs as she packs men's underwear at the Hela intimates export processing zone (EPZ) limited factory in Athi River, near Nairobi, Kenya, July 27, 2017. [Photo: Courtesy]

The private sector could be starved of much-needed capital further, with the Government’s appetite for domestic borrowing at an all-time high.

Latest data from the Kenya National Bureau of Statistics (KNBS) indicates that commercial banks’ credit to the Government has almost doubled over the current financial year, crowding out the private sector.

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