President Uhuru Kenyatta has assured Kenyans that there is no risk of defaulting on debts despite the constant borrowing done by the government.
While giving the State of the Nation address at Parliament chambers on Wednesday, the head of state notes that the government has every year allocated adequate funds in the budget for servicing debts.
In addition, the president says that borrowing by the government has solely been for financing development initiatives whose effect will eventually be felt through creation of jobs and help in servicing the public debt in future.
Kenya’s public debt currently stands at 50 percent of the GDP though half of it is in foreign currency. This has led to widespread fear among Kenyans that the constant and huge borrowing would cripple the country’s economy.
‘’Every year since the start of my administration, we have made adequate budgetary provisions to service the debt. I want to assure Kenyans that at no point has the country been at risk of default or shown any inability to pay its creditors,” the president said in his speech.
He says borrowed cash has been spent on capital projects which will create the necessary investment environment needed in the country.
Though Kenya’s GDP has constantly grown at above 5.9 percent since 2013, the president acknowledged that many Kenyans have not felt its impact in their pockets.