President Uhuru Kenyatta has defended Kenya's borrowing practices as sustainable, emphasizing that debt accumulation aligns with global development trends and has driven significant economic growth.
The president highlighted that infrastructure projects, which account for the bulk of Kenya's debt, have contributed to the nation's wealth. He noted the GDP increased from 4.5 trillion shillings in 2013 to nearly 13 trillion shillings by 2022, attributing this growth to strategic borrowing.
"I pose to the nation: How much is too much borrowing? When does it become unbearable to a nation? The only time debt is a burden to a nation is if a nation is led by looters. We should not shy away from using other people’s money," Kenyatta stated.
Kenya's public debt reached 8.02 trillion shillings ($70.97 billion) in December 2021, with debt repayments consuming one-third of the national budget. Despite this, the president pointed to projected tax revenues of 2 trillion shillings for the 2022 financial year, citing a doubling of tax collections from 800 billion shillings in 2012/13 to 1.662 trillion shillings by April 2022.
Kenyatta acknowledged ongoing challenges with corruption but argued it cannot hinder large-scale infrastructure investments. He emphasized the necessity of borrowing for projects like dams, roads, and rail networks.
The government plans to increase the debt ceiling from 9 trillion to 10 trillion shillings to fund the 3.33 trillion shilling 2022/23 budget. Proposed reforms include setting a debt cap at 55% of GDP, aligning with the Public Finance Management (Amendment) Regulations, 2022.
