Geza Ulole
JF-Expert Member
- Oct 31, 2009
- 58,986
- 78,897
Kenya’s debt ceiling is set to cross the current Sh9 trillion as the National Treasury faces one of the most challenging moments of preparing the 2021/22 budget amid revenue constraints.
Sources at the National Treasury Monday said that the new limit could be in the region of Sh12 trillion as per the proposed amendments to the Public Finance Management (National Government) Regulation.
The law changes are expected to be introduced once Parliament resumes from the long Christmas recess next month.
National Treasury Cabinet Secretary Ukur Yatani did not respond to our enquiries on the proposed amendments to increase the ceiling.
However, Kikuyu MP Kimani Ichung’wah, who chaired the National Assembly’s Budget and Appropriations Committee (BAC) that approved the 2019 amendments to raise the ceiling, said that the government has no alternative but to borrow.
“Unless they increase the debt ceiling by amending the regulations, the country will not have a budget,” Mr Ichung’wah, an accountant, said.
The proposal to raise the debt ceiling comes in barely two years of Parliament voting to amend the regulations to increase the country’s debt ceiling from the then 50 per cent of the gross domestic product (GDP) in the net present value (NPV) to the numerical figure of Sh9 trillion.
Sources at the National Treasury Monday said that the new limit could be in the region of Sh12 trillion as per the proposed amendments to the Public Finance Management (National Government) Regulation.
The law changes are expected to be introduced once Parliament resumes from the long Christmas recess next month.
National Treasury Cabinet Secretary Ukur Yatani did not respond to our enquiries on the proposed amendments to increase the ceiling.
However, Kikuyu MP Kimani Ichung’wah, who chaired the National Assembly’s Budget and Appropriations Committee (BAC) that approved the 2019 amendments to raise the ceiling, said that the government has no alternative but to borrow.
“Unless they increase the debt ceiling by amending the regulations, the country will not have a budget,” Mr Ichung’wah, an accountant, said.
The proposal to raise the debt ceiling comes in barely two years of Parliament voting to amend the regulations to increase the country’s debt ceiling from the then 50 per cent of the gross domestic product (GDP) in the net present value (NPV) to the numerical figure of Sh9 trillion.
