The National Treasury’s proposal to cap the national debt at Sh9 trillion has been dealt a major blow after the National Assembly rejected this.
The MPs want the limit reduced to Sh7.5 trillion. The new development came after Acting National Treasury Cabinet Secretary Ukur Yattani held a meeting with Parliament’s Finance and Budget Committees on Tuesday to deliberate on the matter.
The two committees reportedly disagreed with the National Treasury on the limit. They argued that the Treasury is likely to consider going for more loans, which is not good for the economic growth of this nation.
The National Treasury revealed that the national debt, which stands at Sh5.8 trillion would increase to Sh6.3 trillion if more borrowing is undertaken. The sources also revealed that the debt could rise to Sh9 trillion by 2024.
“The limit is important because Kenyans need to know how much is owed to the country by foreign entities and we need to make this as clear as possible,” said CS Yattani.
Kenyans have been raising concern over the huge foreign debt. President Uhuru Kenyatta-led government has secured several loans for the implementation of the different projects across the country.