Kenya’s incoming president to inherit huge public debt
Posted Friday, March 1 2013 at 02:00
Total revenue collection stood at Kshs360 billion in the first half of the current financial year ending December 31, 2012.
Kenya’s next president will inherit a heavily indebted government struggling to pay its debts but must borrow more to stay in business, the latest report on the state of public finance indicates.
The report by the Controller of Budget shows a massive shortfall in revenue collection and slow disbursement of donor funds have pushed the government into a deep financial hole, throwing a number of programmes in disarray.
The situation has particularly become dire in recent months, forcing the government to dishonour its public debt obligations worth Sh32.6 billion.
The revenue shortfall has also forced the Treasury to suspend exchequer requisitions by ministries, departments and agencies amounting to Kshs56.7 billion.
“This is likely to affect budget implementation in the affected MDAs [ministries, departments and agencies],” Agnes Odhiambo, the Controller of Budget, says in the report for the second quarter of the current financial year.
Kenya’s total public debt stands at a Kshs1.8 trillion.