Government should tread carefully on borrowing

The Government must tread carefully as it seeks to borrow funds for its signature development projects. A new report by the National Treasury to Parliament shows that the Government took up loans valued at Sh430 billion in just four months, mostly from foreign lenders, pushing up the country’s debt to more than Sh4 trillion.

Among the projects that the loans will finance include the Arror and Kamwarer dams at a cumulative cost of Sh70 billion, which the Government says will increase water availability for irrigation and domestic use.