Treasury warns of hard times as debt burden grows

National Treasury Cabinet Secretary Henry Rotich on his way to Parliament Buildings in June during budget statement presentation statement for the 2018/19 financial year. FILE PHOTO | NATION MEDIA GROUP

What you need to know:

  • In just one year, Kenya borrowed Sh632 billion from both external and domestic sources.
  • Apart from being expensive, the commercial loans put a strain on the repayment due to their shorter terms.
  • Kenya’s uptake for pricey loans from commercial banks was on the upward trend with the more favourable multilateral sources constant over the last year.

Kenyans should prepare for tougher times ahead to meet the demands of debt repayment as the country’s appetite for loans remain high and not likely to narrow anytime soon.

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