Kenya spent Sh41 billion more on debts than its total expenditure on development, an official data shows, highlighting the dangers of high borrowing.
The data published by the Treasury on Friday shows that the country spent Sh435.7 billion to settle debts in the 2016/17 financial year.
By comparison Sh394.2 billion was released to all the national government departments and agencies to finance development projects in the financial year that ended on June 30.
The expenditure on debt is also higher than the Sh284.7 billion that the Treasury released to the 47 counties to cover both their current and development expenditures.
Debt repayment has become the single largest item that the Treasury has to pay for.
The amount spent on debt accounts for 53 per cent of the Sh819.9 billion released to cover all the government’s recurrent expenditures.
With the Kenya Revenue Authority having reported a total collection of Sh1.365 trillion for the 2016/17, it implies that 32 cents out of every shilling collected was spent on servicing debts. The figure is set to rise as most of the new loans mature.
Through the financial year, the Treasury chalked up Sh414 billion loans from the domestic markets while another Sh31 billion came from foreign governments and international organisations
The risk of investing… But when the country remain in peace and sectors like tourism and agriculture flourish things will be on that level… Don’t forget we have oil etc… The country rich but need the foundation… Poor politics is what drag us behind
Sometimes 100% of borrowed money inakuliwo. See, eurobond saga. Even if we were spending every borrowed cent wisely we’d still be in shit due to borrow over our limit. We’re doubly in shit because borrowed $$ is mostly stolen.
Define peace when am sleeping hungry or when there’s unemployment or when we reach where Greece is and the govt is told it has to implement austerity measures…peace is relative…
You nailed it. There are instances when 100% of borrowed money is stolen, let’s also keep in mind that, any grand project that is carried out by G.o.K, it end up pumping out a few billionaires, ans lot’s of millionaires.
It’s fucking bullshit that even the Kenyan occupation of Somalia churned out a few millionaires.
Ile austerity measures zitawekwa after elections no matter the winner will be of epic proportions.Gova needs to retrench as many as 40,000 employees and tusahau mambo ya unga and milk subsidies bei inarudi juu saidi after elections.
True, and that is also true for the central government. We need to cut down on the wage bill by removing the many unnecessary positions like Women Rep., Senator and such.
Peace is just one element of growth if we all can work together towards one goal that can be the change we need… But now everything is torn between dirty political margin people don’t think straight anymore… They will raise doubt where thr is none