Let’s manage our public debt more prudently

Last week’s emphatic “No” vote by the Greek populace essentially rejecting European “conditionalities” for further financial support, has sent shock waves into many financial capitals including our own.

In addition to the negative effect that an economically fragile Europe would have on our economy, the Greek crisis is a warning on the dangers of excessive public debt unsupported by a productive economy. Many warnings have been sounded over the last few years that the level of public debt as a ratio of GDP in Kenya is growing too fast.