KENYA SPENT US$330M TO REPAY DEBTS IN JULY

NAIROBI - Kenya spent a third of its domestic revenue collected in the rst month of 2019/20 to repay debt, the statement of actual revenues and net exchequer issues as at end of last month shows.

e details contained in the latest edition of the Kenya Gazette shows that the country spent Sh33.7 billion (About US$329, 904, 907.00) to pay debts out of Sh107.4 billion collected by Kenya Revenue Authority during the month, accounting for 31.3 percent of domestic revenue. e debt service rate rate in the rst month of the year is however seven per cent lower compared to the projected annual usage.

According to the budget statement for the current nancial year as presented in June, the country will spend Sh696.5 billion to service public debt from Sh1.807 trillion domestic debt to be collected by the taxman.

e country is currently in the spotlight for its high debt appetite amid low reve

nue collection.

Kenya spent Sh670.8 billion to repay public debt in the nancial year ended June 30 from Sh1.58 trillion domestic revenue collected by KRA against a target of Sh1.605 trillion.

Kenya’s public debt has grown by a trillion during President Uhuru Kenyatta’s administration from Sh4.8 trillion in 2013 to current Sh5.8 trillion.

Data from the Central Bank of Kenya shows Kenya’s total public debt hit Sh5.8 trillion in June, Sh2.78 trillion from local market and Sh3.02 trillion borrowed externally.

According to World Bank, Kenya’s debt service ratio is currently at 10.6 per cent, having doubled from a single digit of 5.3 per cent in 2013. A collection of Sh107.4 billion in domestic revenue in July means, KRA is likely to collect only Sh1.28 trillion in the year if current trend persist, missing its 2019/20 target by almost Sh600 billion.

Meanwhile, the National Treasury statement shows the government spent Sh55.4 billion out of Sh1.05 trillion for the recurrent budget in July and Sh93.4 billion for development.

e ongoing stando between members of the lower Parliament, executive, Senators and Governors on revenue allocation to counties so no amount disbursed to the devolved units during the month under review.