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Kenya: Big Chunk of Budget Earmarked for Servicing Rising Debt

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The National Assembly has adopted a report of the Budget committee that will see the government spend Sh1.887 trillion in the 2020/21 financial year.

Minority Leader John Mbadi (Suba South), Mr Kimani Ichung'wah (Kikuyu) and Mr Peter Kaluma (Homa Bay Town) accused the Treasury of abandoning small and medium-sized enterprises, which have been allocated Sh3 billion.

Public debt is now an emergency," Mr Mbadi said and called for national dialogue on the loans.

Combining recurrent expenditure and the public debt brings the total to Sh2.1 trillion, which is above the Sh1.62 trillion in ordinary revenue (taxes) and appropriations-in-aid and grants the government projects to get in the next financial year.

It means the government will borrow more than Sh300 billion to finance recurrent and public debt expenditure.

Source: allAfrica.com
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