National Treasury.[Photo/Businessdaily]

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The African Development Bank economists have warned that the country could struggle to meet its public debt obligations as more long term loans mature this year.

This is a warning over increased government borrowing.

The government has increasingly used loans to patch up its tax revenue shortfall as it continues with ambitious development projects.

This comes at a time when the National Treasury is setting aside Sh658.2 billion for loans repayment in 2017/18 alone, the single-largest public expenditure item.

“Continued high public consumption expenditure keeps the budget deficit at close to 10 per cent of GDP, while the expected maturity of public debt could lead to debt distress,” the AfDB economists warn in the bank’s 2018 African economic outlook.

The Kenya Revenue Authority is expected to collect tax revenues amounting Sh1.44 trillion in the period to June, meaning 45 per cent of ordinary revenue will go towards debt settlement.