Wednesday, February 21, 2024 - The Controller of Budget(COB), Margaret Nyakang’o, has warned President William Ruto against over-borrowing money like his predecessor Uhuru Kenyatta.
In a report published on Tuesday, Nyakang'o urged the state to go slow on its borrowing appetite, warning that increased external debts will see the public debt ballooning year in and year out.
"Section 50(2) of the PFMA 2012 states that “the national government may borrow money under this Act or any other legislation and shall not exceed the limit set by Parliament. The Public debt ceiling was set at 55% of the Gross Domestic Debt by Parliament (KSh 10 trillion as of the end of December 2023).
"The Controller of Budget recommends that there is a need to reduce deficit budget financing through fiscal consolidation to curb further growth of public debt," the report continued.
President William Ruto has been blaming the heavy debt burden inherited from the previous administration for the country's current economic woes.
In April 2023, Ruto said his administration would increase its tax revenue collection to reduce reliance on borrowing.
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