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Originally published by Nation Businessbusiness
March 31, 2026
13h ago
Irony of Treasury admitting borrowing not sustainable, then going for more
Treasury admits reliance on borrowing to finance budget not sustainable...
✨ Key Highlights
Kenya's National Treasury Principal Secretary, Chris Kiptoo, has acknowledged that the country's reliance on borrowing to finance its budget is unsustainable, even as the government plans to borrow more to cover a Sh1.12 trillion deficit for the 2025/26 financial year.
- The planned enhanced borrowing will push Kenya's debt stock to a total of Sh12.8 trillion.
- Chris Kiptoo identified fiscal consolidation, including expanding the tax base, as the only solution to avert a financial crisis.
- The supplementary budget, which necessitates additional borrowing, includes funds for salary reviews and commitments to an implement 2025-29 Collective Bargaining Agreement for teachers and civil servants.
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