Stop criticising public borrowing without explaining its purpose

President William Ruto inherited a challenging economic situation in 2022; an over-reliance on expensive commercial debt and a depreciating shilling that inflated repayment costs. [File, Standard]

Kenya’s public debt has sparked widespread concern, with critics quick to decry borrowing without offering context. While it is true that the debt-to-GDP ratio – projected to fall from 65.5 per cent in 2024 to 63.6 per cent this year – still exceeds the IMF’s recommended 50 per cent threshold for developing countries, criticism without perspective is misleading.

Warnings about Kenya’s debt burden are not new. Economists have sounded the alarm for years. The ideal time to halt unsustainable borrowing was in 2013; the next best time is now.