The senate has approved the debt ceiling from 9Trillion to 10 trillion shillings as passed by the National Assembly.
On Tuesday, the senators unanimously voted to raise the debt ceiling giving the National Treasury room to borrow up to Sh1.4 trillion in the next two years.
The Treasury Cabinet Secretary Ukur Yatani had published a gazette notice to amend Section 26 of the Public Finance Management Act, 2015 to raise the debt ceiling, even as he pushed a separate Bill to amend the Public Finance Management Act to change the debt cap to a percentage of GDP from the current ceiling.
Already as a country we have hit the Sh8.4 trillion as of March this year and it is projected that the current government could clock the Sh8.6 trillion mark by end of the current financial year ending June 30.
When President Uhuru Kenyatta took over from the late former President Mwai Kibaki the public debt was at Sh1.8 trillion which was around 42.8 percent of the country’s annual productivity.
The next administration after the August General Election is expected to start off with a budget deficit of Sh864 billion, which would push them to seek to restructure public debt to avoid the burden on the government’s service delivery and the Kenyan taxpayer.