The government has initiated an audit of the multi-trillion national debt, a process that will for the first time make public the country’s creditors.....CLICK HERE TO READ THE FULL ARTICLE>>>
In a move to address growing public skepticism regarding the country’s debt burden, National Treasury Cabinet Treasury John Mbadi and Auditor-General Nancy Gathungu have initiated an audit of the Sh10.5 trillion debts.
This is part of Mbadi’s pledge to make public details of all debts.
The Gathungu-led process will, among others, give Kenyans a clear and detailed account of the country’s liabilities.
Her office will work closely with Treasury’s Public Debt Management Office.
The initiative is a result of public demands for clarity on the country’s debts, including identities of the creditors.
The audit process will also unearth the terms of the loans and the interests paid above the loan amount.
The agreement was made after Mbadi and Gathungu met on Wednesday.
The Treasury boss said the process will provide the country with crucial data that will be instrumental in guiding the future budget process.
The audit will also ensure the country adopts a sustainable financial plan.
“This will allow us to create a budget that is better aligned with our financial realities,” Mbadi said.
He said the move will restore trust as well as set the country on a more transparent and accountable fiscal path.
During his vetting by the National Assembly, the Treasury boss promised to reverse the current situation where Kenyans are in the dark regarding debt status.
“If Kenyans owe people money, why can’t they know who they owe, how much they owe them and the level of interest for each loan?” he asked the vetting panel chaired by Speaker Moses Wetang’ula.
“If you listen to the discussion around debt, Kenyans seem to be asking what our actual level of debt is. Is it really Sh.10.5 trillion? The answer could be Yes, but Kenyans want proof and evidence.”
He vowed to have all debts linked to projects to demonstrate value for the billions borrowed.
“What this means is that debt comes to Kenya without going to specific projects. How then will we pay that loan if it does not fund value adding projects or investments in public assets?” he asked.
“We must work on linking projects to loans. We cannot borrow loans for general budgetary support. From 2014, we shifted our borrowing strategy from specific donor-funding projects to general support.”
The debt audit process comes after Treasury started 2025-26 budget preparation and is expected to help align planning.
“This approach is envisaged to ensure that the audit’s findings will directly inform budget decisions, enhancing transparency and accountability in the process,” Mbadi said….CLICK HERE FOR MORE ARTICLE>>>
