This archive report was first published on 13 June 2020.
Kenya's public debt has become a pressing concern, with the country's debt burden standing at Sh6.4 trillion, accumulated mainly in the past seven years under the Jubilee administration.
As of 2012, the debt portfolio stood at Sh1.6 trillion, but it has since risen astronomically, creating a fiscal challenge. The government's proposed budget is Sh2.8 trillion, with a projected revenue of Sh1.6 trillion, leaving a Sh835 billion deficit that is planned to be plugged with borrowing.
According to the National Treasury Cabinet Secretary Ukur Yatani, the government has budgeted for a Sh835 billion deficit, which will be financed through borrowing. However, this has raised concerns about the country's ability to manage its debt and ensure that borrowed funds are put to good use.
Former Auditor-General Edward Ouko has stated that the government's audits have been unable to capture where the Sh280 billion Eurobond borrowed in 2014 went and what purpose it served. This has raised questions about the transparency and accountability of the government's borrowing and spending practices.
Against this backdrop, Mr. Yatani has undertaken an audit of all loans to establish usage and negotiate with lenders to redirect some of the money to more productive ventures if it has not been spent. He has also increased budgetary allocations for the Ethics and Anti-Corruption Commission and the Directorate of Public Prosecutions to enhance their capacity to fight corruption.
As the country grapples with the economic recession brought about by the Covid-19 pandemic, it is essential that the Treasury exercises strict control of funds and deals with graft cases ruthlessly to ensure that borrowed cash is put into proper use and fully accounted for.
