Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Yatani has told parliamentarians that the government was already feeling the heat over its public debt load, hence decision to instead reactivate the Metre Gauge Railway (MGR) line linking Naivasha to the lakeside city/FILE

Government

Swelling public debt interfered with SGR extension to Kisumu, Yatani

Yatani has told parliamentarians that the government was already feeling the heat over its public debt load, hence decision to instead reactivate the Metre Gauge Railway (MGR) line linking Naivasha to the lakeside city/FILE

NAIROBI, Kenya, Feb 28 – Kenya’s swelling public debt was the reason behind the government’s decision to stop plans of extending the Standard Gauge Railway (SGR) to Kisumu.

Treasury Cabinet Secretary Ukur Yatani told parliamentarians Thursday that the government was already feeling the heat over its public debt load, hence the decision to instead reactivate the Metre Gauge Railway (MGR) line linking Naivasha to the lakeside city.

“Because of our uptake of loans, we felt the project was going to constrain our budget, therefore the decision to propone the project,” said Yatani.  

The construction of the rail was halted last August after the government failed to secure an expensive Sh368 billion loan from China.

  • Borrowing Locally

Yatani said the government will continue borrowing domestically even as it works on reducing the amount of money borrowed.

“I do not want to raise your expectations too high as we cannot say that we will stop borrowing locally, but we have a plan which will assist in reducing the rate at which we borrow as a country,” Yatani said.

He was presenting his submissions on business laws amendment bill 2019 to the finance and planning committee Thursday.

As of October 2019, Kenya’s total domestic debt was Sh2.836 trillion, while the total external public liability was Sh3.066 trillion to total to Sh5.902 trillion.

In the same month, Parliament approved the increase in debt threshold to Sh9 trillion saying this would ensure that the National Treasury had enough funds to meet its annual budget henceforth.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Coronavirus

NAIROBI, Kenya, Mar 25 Kenyans who will fail to pay their dues by April 1 will not be listed in the Credit Reference Bureau...

Headlines

NAIROBI, Kenya, Mar 13 – Meet Kennedy Okaka, the CEO of PH Africa which manufacturers and distributes hand sanitizers. Okaka speaks to Capital Business...