This archive report was first published on 5 July 2021.
Kenya's National Assembly has imposed borrowing caps on the Treasury, requiring clearance for any borrowings exceeding KSh 1 Billion.
This decision follows the approval of a Public Accounts Committee report on the 2017/18 financial year, which was tabled in parliament.
According to the report, the Treasury will need to borrow more to fill the deficit in the KSh 3.66 Trillion 2021/22 budget, as indicated by Treasury Cabinet Secretary Ukur Yatani.
The situation is likely to require amendments to the law to increase the country's debt ceiling from KSh 9 Trillion to an estimated KSh 12 Trillion.
Additionally, members of parliament have put controls on supplementary budgets, barring the Treasury from presenting any such mini-budgets within two months to the end of a financial year.
This means that there will be no supplementary budgets brought before the House after April 30th of each year, as stated by the Public Accounts Committee.
The committee believes that bringing supplementary budgets too close to the main budget is disruptive to policy direction.
