Kenya plans debt fund to avoid biting cash crunch
Tuesday February 23 2021
By CONSTANT MUNDA
Summary
The National Treasury said it will imminently gazette rules for establishing the fund to specifically pay off maturing debt, buy back bonds when interest is low and retire some of the debts early to avoid higher costs in future.
This comes at a time when debt redemptions (payment of principal sums) is projected to jump Sh194.57 billion, or 65.17 percent, in next two fiscal years to Sh493.12 billion in June 2023 from estimated Sh298.55 billion in the current year.
Kenya will create a special fund for settling of fast-maturing loans from the financial year starting July in a bid to mitigate future cash flow challenges arising from heavy repayment of debts whose grace period has expired.
Treasury overshoots budget by Sh120.8bn
Wednesday February 10 2021
By EDWIN MUTAI
Summary
The State has overshot its approved 2020/2021 budget by Sh120.8 billion, mainly pressed by Covid-19 related expenditure, new documents filed in Parliament show.
Treasury Cabinet Secretary Ukur Yatani said the overall ministerial cumulative expenditure in the fiscal year 2020/21 had increased by four per cent from the original approved budget.
The State has overshot its approved 2020/2021 budget by Sh120.8 billion, mainly pressed by Covid-19 related expenditure, new documents filed in Parliament show.
Treasury Cabinet Secretary Ukur Yatani said the overall ministerial cumulative expenditure in the fiscal year 2020/21 had increased by four per cent from the original approved budget of which recurrent and development spending climbed by 2.1 and 7.7 per cent, respectively.