Time to slow down on infrastructure spend
The Quarterly Economic Budgetary Review shows the outstanding amount of Kenya’s public debt has risen almost two-fold since the Kenyatta Administration entered office, from Sh1.8 trillion in 2013 to Sh3.5 trillion as of September 2016.
This is a steep rise indeed and is putting incredible pressures on the economy.
The public debt has increased from the Sh1,382,382,194,875 reported in the year 2010/2011 to the Sh2,674,806,364,195 in the year 2014/2015, an increase of Sh1,292,424,169,320, or 93 per cent over the five- year period.
Jubilee has clearly been on a borrowing spree and while it is good to invest in large infrastructure projects, Kenya should try a more step-by-step approach.
Fully 20 per cent of KRA revenue collections are going to be dedicated to servicing debt, including the controversial Eurobond. The government had proposed a second bond this year. Treasury targets a net domestic debt of Sh406.61 billion by June 2017.
When the public debt grows so exponentially, it is surely time to slow down on the infrastructural spend and borrowing.
HISTORICAL QUOTE “Learning without thinking is useless, but thinking without learning is very dangerous!”