Treasury CS Ndung’u on Public Debt: Treasury CS Ndung’u has announced that Kenya’s debt has exceeded Ksh. 9.4 trillion, but he assures that it remains manageable despite the global economic challenges causing disruptions worldwide.
During the presentation of the 2023/24 budget in Parliament on Thursday, CS Ndung’u acknowledged that servicing the debt has become more expensive due to higher interest rates and the depreciation of the Kenyan shilling against major global currencies.
“Further the depreciation of the currency has increased the size of the public debt stock as half of the public debt is actually denominated in foreign currency,” he said.
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The Treasury CS emphasized that despite the growing public debt in Kenya, the country remains committed to fulfilling its debt obligations.
“Kenya has not accumulated debt service arrears and the government is committed to honoring all public debt obligations as they fall due,” the CS said.
He also highlighted the government’s intention to decrease its expenditure during the current financial year as part of efforts to enhance the country’s debt sustainability ratio.
“Over the medium term, revenue-driven fiscal consolidation policy stands is expected to improve further the country’s debt sustainability ratio and debt carrying capacity,” the CS said.