National Treasury Cabinet Secretary Henry Rotich has rejected claims of a debt crisis, asserting the government's borrowing remains within sustainable limits. His comments come amid growing concerns over Kenya's public debt, which surpassed KSh 5.5 trillion by May 2019.
Rotich disputed Central Bank of Kenya Governor Patrick Njoroge's warning that the country had reached its debt ceiling, emphasizing that Kenya maintains capacity to borrow. 'Countries in a debt crisis cannot service their debt, which is not our situation,' he stated during an interview with KTN.
The treasury chief highlighted that recent loans, including a KSh 210 billion Eurobond and a KSh 75 billion World Bank facility, align with statutory borrowing frameworks. 'We have a KSh 600 billion budget deficit sanctioned by Parliament, which governs our borrowing decisions,' he explained.
Despite these assurances, the national debt has exceeded the recommended debt service revenue ratio of 30% by 3.4%. CBK's Njoroge urged debt restructuring to manage maturing obligations, stating 'the moment for debt reorganization has arrived.'
Recent borrowing activities include a KSh 250 billion Eurobond announcement and a KSh 210 billion Eurobond loan secured in May 2019, contributing to the rising debt levels. The government maintains it will continue accessing international markets to fund its Big Four agenda.
