Treasury Cabinet Secretary Henry Rotich reaffirmed Kenya's public debt sustainability, stating that the country's debt-to-GDP ratio in net present value terms stood at 46% as of December 2018, below the 50% statutory threshold. He emphasized that fiscal consolidation strategies outlined in the 2019 Budget Policy Statement aim to maintain this balance through revenue growth, expenditure control, and investment management.
Rotich dismissed allegations of reckless borrowing, pointing to Kenya's economic expansion from Sh4.7 trillion in 2013 to Sh8 trillion by 2017 as evidence of productive debt utilization. He highlighted infrastructure projects like the standard gauge railway and power sector developments as key drivers of growth, noting that these initiatives have outpaced achievements of previous finance ministers over 50 years.
Addressing concerns about debt refinancing, Rotich described it as a standard practice to reduce costs and risks, arguing that economic growth enhances future debt-servicing capacity. He cited the decline in fiscal deficit from 9% in 2016/17 to 7.1% in 2017/18, with the 2019 Budget Policy Statement targeting a reduction to under 3.5% of GDP in the medium term.
The CS also reiterated the government's anti-corruption efforts, including automation of public financial management systems to eliminate rent-seeking opportunities. He urged public scrutiny of official documents rather than relying on
