Parliament rejects Treasury’s Ksh.9 trillion debt ceiling proposal

Parliament rejects Treasury's Ksh.9 trillion debt ceiling proposal
File Photo of The National Treasury.

The National Assembly has rejected the National Treasury’s proposal to cap the national debt at Ksh.9 trillion suggesting a reduced figure of Ksh.7.5 trillion.

Parliament’s Finance and Budget Committees met with Acting National Treasury Cabinet Secretary Ukur Yatani over the proposals on Tuesday.

Sources told Citizen TV that members of the two committee’s main reservation with the Ksh.9 trillion figure was that Treasury could go on a borrowing spree to exhaust the set limit.

In its proposal, the National Treasury stated that the country’s current debt stands at Ksh.5.8 trillion and is expected to go up to Ksh.6.3 trillion this year after it borrows to finance the current financial year.

The document further shows that Treasury anticipates that we could hit the Ksh.9 trillion mark 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 Yatani on Monday.

The legislators further expressed reservations stating that if the country hits its limit, most if not all of the revenues raised by the taxman will go towards paying the national debt.

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Story By Faizal Ahmed
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