Treasury CS Ukur Yatani says Kenya has no room to borrow more than Sh500 billion to clear pending bills.
Treasury insists the arrears be settled gradually through annual budgetary allocations where they should be treated as priority payments.
The Treasury has shot down a resolution by lawmakers to borrow more money to clear accumulated arrears to suppliers and contractors as well as court fines, arguing the move will burst the country’s Sh9 trillion debt ceiling.
Treasury Cabinet Secretary Ukur Yatani says Kenya has no room to borrow more than Sh500 billion to clear pending bills for goods and services rendered as well as court awards for contract breaches, unlawful dismissals, and human rights violations.
