Kenya is among countries in Sub Sahara Africa that are prone to a financial meltdown, according to a report by Moody’s.
According to the rating agency, Kenya is on the list of vulnerable countries that have either unfavorable debt structures with thin external buffers, narrow domestic debt market and/or a weak debt management capacity.
Moody’s lists the Democratic Republic of Congo (DRC), Mozambique and Zambia as most exposed to a financial crisis while Ghana, Angola and Kenya are also vulnerable but to a lesser extent.
The rating agency’s assessment of Kenya follows a move to establish a debt management office within the National Treasury. The Public Debt Management Office (PDMO), a department at the National Treasury, has received a fresh mandate.
Beginning this month, borrowing powers previously held by the Treasury Cabinet Secretary will shift to this unit.
Latest figures from the Treasury, as at January 31st 2020 indicate that the Government earned revenue of KSh1.4 trillion. This is made up of KSh897 million in taxes collected by Kenya Revenue Authority (KRA), KSh304.8 billion in domestic borrowing and KSh17.3 billion in foreign loans.
Total recurrent expenditure was KSh588 billion while development expenditure was KSh1.3 trillion.
Treasury’s statement of actual revenue and expenditure as at 31st January, 2020 indicates that a total of KSh153.3 billion was disbursed to the County Governments. This excludes KSh6.2 billion for leasing of medical equipment, KSh485 million for construction of various County HQs and KSh8.9 billion as Road Maintenance fuel levy.