Monday, August 22, 2016

Kenya’s Sh42bn debt bill exceeds State July spend


 President Uhuru Kenyatta consoles former President Mwai Kibaki shortly before the burial service of Mama Lucy Kibaki at Othaya Approved School, Nyeri County. Kibaki was on Sunday afternoon flown to South Africa for specialised treatment. PHOTO | PSCU
By KIARIE NJOROGE


Kenya spent Sh41.9 billion on its loan repayments in July exceeding the total amount used to run government operations in the first month of the financial year, underlining the debt burden on taxpayers.
Treasury data shows that all the ministries, departments and agencies spent Sh39.2 billion in the first month of the fiscal year.
The ministries are yet to start spending development cash.
Kenya has in the last three years been borrowing more, especially from China mainly to finance infrastructure projects and cover budget deficits but the growing loans have raised questions on whether the economy can sustain the repayments.
Kenya received a Sh60 billion syndicated loan from China last month pushing its total bilateral loans to Sh280 billion, triple its position two years ago.

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