Treasury projects higher borrowing for both financial years 2020/2021 and 2021/2022 due to expected lower revenue.
The debt is already piling up quickly, having grown from Sh5.81 trillion in June 2019 to Sh6.69 trillion in June this year.
The rising debt has often raised questions over the government’s inability to cut expenditure.
Kenya will hit its Sh9 trillion public debt ceiling within the next two years going by the projected revenue shortfall in the current and next fiscal years, coupled with the struggle by the government to control expenditure.
The National Treasury, in the draft 2020 Budget Review Outlook Paper, is projecting higher borrowing for both financial years 2020/2021 and 2021/2022, due to expected lower revenue, with the deficit seen at 8.4 percent and 7.3 percent in the years respectively.
