President Uhuru gets MPs’ nod to borrow Sh3 trillion

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President Uhuru Kenyatta has been handed an okay to borrow Sh3 trillion more after a Parliament committee adopted regulations setting the debt limit at Sh9 trillion.
The Committee on Delegated Legislation gave nod to the regulations by Acting Treasury Cabinet Secretary Ukur Yatani that now removes the 50 per cent cap of Gross Domestic Product (GDP) which stands at Sh6 trillion.
The committee chaired by Uasin Gishu MP Gladys Shollei agreed that the clauses in the Public Finance Management (National Government) Regulations, 2015, in respect of the percentages be deleted.
Yatani sought that regulation 26(1) be amended by deleting the words “50 per cent of GDP in net present value terms”.
Critics have faulted the government spending borrowed funds on recurrent expenditure instead of capital projects.
The country’s debt stands at Sh5.8 trillion, almost 300 per cent more than the Sh1.89 trillion Uhuru inherited from the Kibaki administration in 2013.
MPs were split on the committee’s report with other backing the proposal by the CS and other saying fiscal consolidation is critical compared with setting limits.

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