World Bank in fresh warning as Kenya’s debt hits Sh3.8 trn

Treasury secretary Henry Rotich. FILE PHOTO | NMG

What you need to know:

  • World Bank says borrowing to finance infrastructure projects should be balanced with the dire risks of overborrowing.
  • Kenya has in the past four years borrowed billions of shillings to finance mega public infrastructure, including the ongoing construction of the standard gauge railway (SGR) line, power generation and road projects.
  • Kenya’s total public debt stood at Sh3.827 trillion or 51.50 per cent of GDP in December 2016, according to latest data from the Treasury.

A rapid build-up of public debt in the past four years has put the Kenyan economy at the risk of turbulence, the World Bank warned on Wednesday, adding its voice to rising concerns over the possible impact of heavy borrowing on the country’s future.

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