Plans by the US to expand Mombasa-Nairobi highway will be grounded until Kenya manages her raising public debt, Ambassador Kyle McCarter has said.
The US had contracted a firm to expand the highway for Sh300 billion, but the latest directive means no activities will take place on the ground until further notice.
In an interview with the Nation on Tuesday, McCarter said Kenya must first regulate her debts before the US constructs the highway in coming years.
“Kenya has hit a debt ceiling… the onus is on Kenya to put its debt in order.”
He said: “We don’t want to put debt on Kenyans. We want to do business in a transparent and ethical way.”
Kenya’s total public debt is currently around $60 billion (Sh6 trillion), or 63 per cent of the GDP.
In other words, the country owes more than half the value of its economic output, which is in breach of the statutory 50 per cent debt-to-GDP ratio in present value terms.
However, the envoy said the US was is determined to finance the project. “This will be a signature project. The cost will be lower and it will be a good road — even for security purposes.”
President Uhuru Kenyatta throughout his time in office, has worked closely with China in his effort to expand the infrastructure across Kenya.
In return, the country has accumulated a lot of debts. Recently, Parliament raised debt cap ceiling to Sh9 trillion, the highest in the history.
Currently, Uhuru is in Russia following a courtesy invitation by President Vladimir Putin, who is keen to start working with African nations.