The Controller of Budget Dr Margaret Nyakang’o is calling on the National Assembly to play an active role in deterring public debt accumulation in the country.
Nyakang’o told legislators Thursday to consider fast tracking of the review of the Controller of Budget Act 2016 to facilitate prudent expenditure of public resources.
Kenya’s public debt breached a debt ceiling of 10 trillion shillings by a record Ksh 250 billion in the financial year ended June 30.
The public debt stock comprised of Ksh 5.4 trillion due to external lenders and Ksh 4.8 trillion due to domestic lenders.
The cost of debt servicing in the year ended June was Ksh 391 billion of which the highest payment Ksh 107 billion went to China.
According to the Controller of Budget Margaret Nyakang’o, the current legislative gaps are fostering misuse of public resources.
Nyakang’o warned that if the situation is left untamed the country’s development will decline as public coffers are only left to cater for recurrent expenditure.
Kenya’s latest credit rating by Fitch is ‘B’ Negative, having been revised from ‘B’ Stable-though this is still a safe territory, it has moved down to just two steps now above the default rating of D where Zambia is.
