Economic observers have warned the country’s national debt is trading on dangerous grounds.
Experts from Research firm INFOTRACK and former finance ministers in the country weighed in on the matter.
consecutively followed with ANC leader Musalia Mudavadi raising concerns over our remittances exceeding the country’s exports.
According to the central bank of Kenya the country’s debt stood at sh7.3 trillion.
And this is as of November last year from sh6.2 trillion.
Earlier this year the country was given a debt repayment gap for 6 months.
Observers now say such plans can only bear fruit if ails like corruption are tackled by the government further warning the country would slide into a debt crisis as the borrowing spree continues.
Policy analysts are worried about the country’s public debt compared with its national income.
Kenya has a population of 51 million, implying that every Kenyan owes about USD$962 – and produces USD$1169 a year. In comparison, each South African owes about USD$1434 and produces USD$12,295.
Unsustainable debt levels can be harmful.
They can “crowd out” development and social programmes because huge portions of government revenue are taken away from essential services and used instead to service debt.
In the worst case scenario, Kenya might be forced to cede control of its strategic national assets to foreign creditors.
This has happened in some countries such as Sri Lanka which had to hand over a strategic port to China.