‘Debt’ is not a dirty word as we often see it

Public debt

Kenya's debt crisis has been cooking since the Jubilee administration took charge.

Photo credit: File

What you need to know:

  • There is a legitimate question as to whether the government has been borrowing to deliver such change and transformation.

National Treasury officials must have sighed with relief following the debt repayment holiday by bilateral donors. But the suspension so far — part of the G20’s Debt Service Suspension Initiative (DSSI) — is for six months. In four months, headlines like “Kenya could fail to repay its debt in 2025”, “Kenya is in financial distress, government admits”, “Kenya likely to breach $80 billion debt ceiling by 2022” will resurface.

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