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The low preparedness for retirement has been pegged on several factors such as high cost of living, not having enough income to save, lack of saving discipline and lack of financial advice/FILE

Finance

Govt borrowing a big concern for Kenyans

Recently, the World Bank has offered Kenya yet another loan of Sh4.7 billion mentioned to fund solar power projects and provision of clean cooking stoves in 14 counties/CapitalFM

NAIROBI, Kenya, Jun 13- Kenyans have expressed concerns at the rate in which the government has expanded its borrowing capacity.

Speaking to Capital FM news team, Lazaro Koech Korir said the government has joined the bandwagon of netizens who borrow to clear previous debts.

“The government has started acting just like everybody else, you borrow to pay for the previous debts, but the big question who will face the consequences,” he said.

According to Thomas Kang’ethe who works as a hotel attendant within Nairobi CBD should the government’s borrowing appetite increase Kenyans will then be subjected to contribute to the clearance of the loans.

“As the debt is ballooning, the government will not go any further, they will just rotate around Kenyans exposing us to more taxes,” said the troubled Kang’ethe.

Recently, the World Bank has offered Kenya yet another loan of Sh4.7 billion mentioned to fund solar power projects and provision of clean cooking stoves in 14 counties.

This will see the Kenya-Off-Grid Solar Access Project use the Sh4.2 billion for solar projects that will in turn help install solar home systems in the 14 marginalized counties.

Part of the loan Sh500 million is set aside to buy clean cooking stoves for 1.3 million individuals from the 277,000 homes.

The counties set to benefit from the project include West Pokot, Turkana, Isiolo, Samburu, Marsabit, Mandera, Wajir, Garrisa, Tana River, Lamu, Kilifi, Kwale, Taita Taveta and Narok.

This has added on top of Kenya’s increasing debt that has attracted Kenya’s attention and various institutions where the Kenya Revenue Authority has failed to stick to the payment requirements.

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Initially, the Treasury is expected to borrow a total of Sh306.5 billion from the international market against domestic borrowing of Sh289.2 billion to boost the Sh607.8 billion budget deficit.

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