This archive report was first published on 6 November 2019.
On November 6, 2019, Kenya's senators voted to raise the country's public debt ceiling to Ksh9 trillion, a move that has raised concerns about the country's economic sustainability.
The decision was made despite criticism from global financial institutions, including the World Bank and the International Monetary Fund (IMF), which have warned that the country's current debt of Ksh5.8 trillion is not sustainable.
According to the World Bank, the country's budget estimates are unrealistic, and fiscal consolidation should be an outcome of a realistic revenue projection and a well-anchored expenditure position to ensure debt remains sustainable.
Kenya's Treasury Cabinet Secretary, Ukur Yattani, has defended the decision, stating that the government needs to raise the debt ceiling to meet its financial obligations this year.
However, critics argue that the government's spending appetite is insatiable, and the country's debt is unsustainable. Economists have also differed with President Kenyatta's position that the borrowed money has been injected into development projects that will grow the country's economy.
Instead, they argue that most of the borrowed money has been misappropriated and invested into projects that do not provide value for money.
MP Moses Kuria has also accused the Treasury of cooking books to cover up its long list of poor economic decisions.
