What Kenya needs to cut its huge appetite for borrowed money
DEBT: Kenya needs substantial and sustained fiscal discipline, not a new government agency to rein in on the escalating public debt, analysts have said.
They said the Public Debt Management Authority Bill fronted by Nambale MP Sakwa Bunyasi which seeks to put checks and balances on the National Treasury Cabinet secretary and County finance executives by spelling conditions under which they can borrow funds is unnecessary.
“The country’s debt is rising at an alarming level and there is need to manage the same to protect the current and future generations,” reads the Bill.
Borrowing standards
However, analysts say that setting borrowing standards and discipline is the mandate of Parliament and cannot be delegated.
“What is needed is fiscal discipline to follow already existing policies, the new agency will not arrest the borrowing spree,” the CEO of Call Street Capital George Bodo said.
Lack of issue-driven MPs is also seen as a major challenge when it comes to passing such as critical matter given that most of the politicians are now allied to the government.
Former CEO of Sterling Capital John Kirimi said there is already sufficient laws and mechanisms to control borrowing adding that what is lacking is discipline.
“There are already enough mechanism to limit how much we borrow, what is lacking here is the discipline.
Kenyan’s were already very negative about the Parliament raising the debt ceiling to Sh9 trillion,” he said.
Kirimi said that the current MPs would be bribed to ensure such as motion fails or still if they are promised positions they would kill the Bill.
Kenya’s public is currently at Sh7.1 trillion with Sh1.3 trillion already approved by lenders which will raise the national debt to Sh8.4 trillion.
The proposed authority shall succeed the Public Debt Management Office currently domiciled at the National Treasury.
The Bill sets out that the authority shall be managed by a board whose Chairperson shall be appointed by the President after being approved by the Parliament.
DEBT: Kenya needs substantial and sustained fiscal discipline, not a new government agency to rein in on the escalating public debt, analysts have said.
They said the Public Debt Management Authority Bill fronted by Nambale MP Sakwa Bunyasi which seeks to put checks and balances on the National Treasury Cabinet secretary and County finance executives by spelling conditions under which they can borrow funds is unnecessary.
“The country’s debt is rising at an alarming level and there is need to manage the same to protect the current and future generations,” reads the Bill.
Borrowing standards
However, analysts say that setting borrowing standards and discipline is the mandate of Parliament and cannot be delegated.
“What is needed is fiscal discipline to follow already existing policies, the new agency will not arrest the borrowing spree,” the CEO of Call Street Capital George Bodo said.
Lack of issue-driven MPs is also seen as a major challenge when it comes to passing such as critical matter given that most of the politicians are now allied to the government.
Former CEO of Sterling Capital John Kirimi said there is already sufficient laws and mechanisms to control borrowing adding that what is lacking is discipline.
“There are already enough mechanism to limit how much we borrow, what is lacking here is the discipline.
Kenyan’s were already very negative about the Parliament raising the debt ceiling to Sh9 trillion,” he said.
Kirimi said that the current MPs would be bribed to ensure such as motion fails or still if they are promised positions they would kill the Bill.
Kenya’s public is currently at Sh7.1 trillion with Sh1.3 trillion already approved by lenders which will raise the national debt to Sh8.4 trillion.
The proposed authority shall succeed the Public Debt Management Office currently domiciled at the National Treasury.
The Bill sets out that the authority shall be managed by a board whose Chairperson shall be appointed by the President after being approved by the Parliament.
