Nairobi — The National Treasury has embarked on a fresh bid to raise the debt ceiling from the current Sh9 trillion that was set by Parliament in October 2019.
Treasury Cabinet Secretary Ukur Yatani said the statutory debt limit has to be expanded to cater to the budget deficit in the financial year 2021-22 and the preceding years.
Yatani spoke Thursday in Parliament building when he read the Sh3.6 Trillion Budget for the 2021/22 financial year.
In the National Budget Speech, Yatani said the country's debt remains sustainable.
Despite its sustainability, Yatani however admitted that the economy's debt carrying capacity had declined.
"Financing of the fiscal deficit will continue to be strictly guided by the Debt and Borrowing Policy and the annual Medium-Term Debt Strategy," he said.
The Treasury CS assured MPs that the national government's borrowings will be used only for the purposes of financing development projects.
Yatani said decisions on the day-to-day management and operations of public debt management shall be undertaken by the Public Debt Management Office to enhance efficiency, strengthen accountability and transparency.