GREAT VISIONAIRE
JF-Expert Member
- Sep 28, 2012
- 365
- 452
The increased debt has seen Kenya commit more than half of taxes to paying loans, leaving little cash for building roads, affordable housing and revamping of the ailing health sector.
Public debt stood at Sh5.04 trillion in June 2018, up from Sh4.41 trillion in June 2017, Sh3.62 trillion in June 2016, Sh2.83 trillion in June 2015, Sh2.37 trillion in June 2014 and Sh1.89 trillion in June 2013.
Mr Jibran Qureishi, the regional economist for Stanbic Bank, said growth in public debt has partly been driven by over-budgeting leading to ambitious tax targets, which have largely been missed.
The ambitious tax targets, he added, have increased the government's appetite to continue spending without corresponding impact on economic growth.
"When you do that (have ambitious revenue targets) from the beginning, you feel like you have enough room for maneuver when it comes to expenditure, but reality is you are not going to achieve that tax number," Mr Qureishi said.
Public debt stood at Sh5.04 trillion in June 2018, up from Sh4.41 trillion in June 2017, Sh3.62 trillion in June 2016, Sh2.83 trillion in June 2015, Sh2.37 trillion in June 2014 and Sh1.89 trillion in June 2013.
Mr Jibran Qureishi, the regional economist for Stanbic Bank, said growth in public debt has partly been driven by over-budgeting leading to ambitious tax targets, which have largely been missed.
The ambitious tax targets, he added, have increased the government's appetite to continue spending without corresponding impact on economic growth.
"When you do that (have ambitious revenue targets) from the beginning, you feel like you have enough room for maneuver when it comes to expenditure, but reality is you are not going to achieve that tax number," Mr Qureishi said.
