Kenya: Cabinet Ditches Sh10 Trillion Debt Cap for GDP Percentage

1 March 2023
Capital FM (Nairobi)

Nairobi — The Cabinet has approved a legislative proposals seeking to replace the nominal debt ceiling of Sh10 trillion with a debt anchor set at 55 percent of Gross Domestic Product (GDP) in present value terms.

State House Spokesperson Hussein Mohammed said the country's top policy making organ considered the legislative proposal to harmonise the definition of 'Public Debt' in the Public Finance Management Act, 2012 and the attendant Regulations with the spirit and letter of Article 214 (2) of the Constitution of Kenya.

According to a dispatch sent to the media, this is in keeping with the global best practice on Debt Limit Policy, and in furtherance of the Kenya Kwanza administration's quest to realise inter-generational equity through sustainable debt management.

Kenya's stock of public debt currently stands at 9.1 trillion Shillings according to the Central Bank of Kenya (CBK).

Read the original article on Capital FM.

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