President William Ruto’s administration has once again been put on spot for borrowing beyond the limit set by parliament.
The Kenya Kwanza administration on Friday, June 30, breached a Ksh10 trillion debt limit set by Members of Parliament in 2021.
Reports indicated that the country had borrowed a total of Ksh10.027 trillion, cleverly exceeding the ceiling without the legal approval of Parliament. This was established during the last day of the 2022/2023 financial year.
Even though there are clear indications that President Ruto had significantly slowed down on borrowing, it was no doubt that his government needed to consult with the national assembly and seek adjustments to the country’s debt ceiling.
Speaking to one of the media outlets, Economist (CPA) Tom Oketch noted that the country’s failure to adhere to local procedures including the legal framework for international borrowing could easily lead to a loss of confidence in the government’s ability to manage its finances.
“International lenders’ confidence in a country’s ability to repay loans is based on a number of factors including the country’s economic growth prospects, debt burden and fiscal discipline such as a legal framework for the loans,” Okatch explained.
by: The_Updater