• About Hisa Technologies
  • Advertise
  • Careers
  • Contact Us
  • Estate Cloud
Tuesday, August 9, 2022
  • Login
  • Register
No Result
View All Result
NEWSLETTER
Kenyan Wallstreet
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
No Result
View All Result
Kenyan Wallstreet
No Result
View All Result

Treasury Needs Austerity Measures to Reduce Mounting Debt

Wandiri GitogobyWandiri Gitogo
January 17, 2020
in Kenyan News
Reading Time: 3 mins read

The National Treasury should spend within its means to reduce pressure from the mounting debt. Treasury CS, Ukur Yattani stressed the need to retain austerity measures beyond the current financial year. In 2019, Kenya’s public debt hit Ksh6 trillion, tripple the amount of government debt when the current government took office in 2013.

Growing public debt

Kenya’s budgetary needs have grown steadily partly due to huge infrastructural projects such as the Standard Gauge Railway. However, revenues have stagnated thus failing to meet infrastructural and recurrent expenditure needs. Therefore, the government has been borrowing from the domestic and external markets to finance these projects.

ADVERTISEMENT

Central Bank data shows that in September 2019, total debt stood at Ksh5.9 trillion comprising of Ksh2.8 trillion in domestic debt and Ksh3.1 trillion in external debt.

Domestic Debt

Treasury has been borrowing from the domestic market through treasury bills and bonds. Treasury bills are short term debt instruments with maturities of 91, 182 and 364 days while treasury bonds are medium to long term debt instruments with maturities greater than one year. As at the end of 2017/18, the composition of government securities was Ksh 878.6 billion for treasury bills and Ksh 1.511 trillion for treasury bonds.

READ ALSO: Treasury to Cut Spending Due to Declining Revenues

Kenya’s Public Debt Hits KSh 6 Trillion

Treasury bills and bonds help to bridge the budget deficit and are used in financing government projects.

According to Parliament budget office “Increased borrowing from the domestic market has been necessitated by a widening fiscal deficit. Net domestic financing rose from Ksh 167 billion in 2012/13 to Ksh 251 billion in 2014/15 then dropped to Ksh 202 billion because of reduced fiscal deficit.”

Fiscal deficit analysis

CS Yattani stresses that his team is keenly examining the size and nature of public debt with a view to re-profile the outstanding debt and improving overall debt management.

In the near term, there will be increased debt principal and interest repayments that are likely to consume a huge chunk of government revenues.

Treasury CS Yattani will release the revised Medium Term Debt Management Strategy which we hope will reduce borrowing and prioritize loan repayment.

RELATED

Kenya to Refinance its Commercial Debt

Senate Committee Approves Treasury’s KSh 9 Trillion Debt Ceiling


Hisa App Hisa App Hisa App
Previous Post

Kenya Power Plot to Curb Illegal Connections

Next Post

Google’s Parent Company’s Market Value Hits $1 Trillion

Related Posts

Kenya Shilling

Ahead of Polls, Kenya Shilling Hits Historic Low of 119.680 Against US Dollar

August 8, 2022
Kenya among 6 Member States to Pilot the AfCFTA

Kenya among 6 Member States to Pilot the AfCFTA

August 8, 2022

CBK Licenses Virtual Pay to Operate in Kenya

August 8, 2022

Copia Opens Manufacturing Plant in Kenya

August 8, 2022

Sameer Africa Plc Issues Profit Warning for 2022

August 8, 2022

DStv Set to Hike Prices by 8.6% on Rising Cost of Producing Content

August 5, 2022

CIC Insurance Records a 45% Growth in Half Year Profits to Ksh 376 Million

August 5, 2022

NCBA Launches Ksh 2 Billion Electric Car Loan Financing for Customers

August 5, 2022
Load More
Next Post

Google's Parent Company's Market Value Hits $1 Trillion

ADVERTISEMENT

Follow Us

  • 142.3k Followers
  • 2.4k Subscribers
  • 1.1k Followers

WhatsApp

Subscribe

Telegram  

Subscribe

Podcasts

Upcoming Events

There are no upcoming events.

View Calendar
Add
  • Add to Timely Calendar
  • Add to Google
  • Add to Outlook
  • Add to Apple Calendar
  • Add to other calendar
  • Export to XML

Featured

No Content Available

About Us

We are a leading integrated digital content platform providing in-depth business and financial news across Sub-Saharan Africa & the globe. Kenyanwallstreet.com is a property of Hisa Technologies Ltd, a financial media & software company.

Contact Us

Kenyan Wall Street
Email: [email protected]
Website: www.kenyanwallstreet.com

Disclaimer

The information contained in this website is for general information purposes only.
Read more..

  • About Hisa Technologies
  • Advertise
  • Careers
  • Contact Us
  • Estate Cloud

Copyright 2021. Hisa Technologies. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Aviation
    • Banking
    • Energy
    • Infrastructure
    • Insurance
    • Investment
    • Manufacturing
    • Markets
    • Public Policy
    • Real Estate
    • Startups
    • Technology
  • Podcast
  • Videos
  • Events

Copyright 2021. Hisa Technologies. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In