Public debt hit Sh10.58 trillion in September, with the National Treasury revealing that both domestic and external liabilities have risen rapidly under the government.

The elevation of the public debt points to a sustained borrowing appetite by the Kenya Kwanza government and the impact of the weakening shilling against foreign currencies.

The debt levels have grown at a time when the National Treasury has acknowledged Kenya’s headroom for more public borrowing is narrowing in a move expected to pile pressure on the taxman to raise funds for servicing public debt. “As of September 31, 2023, Gross Public Debt increased by Sh310.0 billion to Sh10.58 trillion compared to Sh10.27 trillion at the end of June 2023,” said National Treasury Principle Secretary Chris Kiptoo in a presentation before the National Assembly’s Public Debt and Privatisation Committee. 

Dr Kiptoo said the Gross Public Debt comprises Sh5.66 trillion (53.5 per cent) external debt and Sh4.92 trillion (46.5 per cent) domestic debt. “The depreciation of the Kenya shilling has been the primary driver of nominal growth of external debt,” he said. The local currency hit an all-time low against the dollar yesterday, setting up the government for further debt servicing distress. It has weakened by nearly 20 per cent against the dollar since the start of the year. According to Central Bank of Kenya (CBK) data, the shilling exchanged at an average of 151.6794 against the dollar – a record low.

Kenya’s sovereign loan repayments have been rising faster than collections of tax revenues in recent months, National Treasury disclosures show, signalling the country could be headed for a fresh debt crisis.

The lagging revenues against the pending urgent debt obligations highlight mounting concerns about the strength of the economic recovery and the government’s ability to sustainably service upcoming debt repayments, including the $2 billion (Sh302 billion) Eurobond. 

On Thursday however, President William Ruto finally revealed a much-awaited plan to pay off the Eurobond.

“Our efforts to stabilise the situation have yielded such progress that next month, in December, we will be able to settle the first $300 million (Sh45 billion) instalment of the $2 billion Eurobond debt that falls due next year,” he said in his State of the Nation address in Parliament.

“I can now state with confidence that we will and shall pay the debt that has become a source of much concern to citizens, markets and partners.”

The Kenya Kwanza administration has been betting on the Kenya Revenue Authority (KRA) to ramp up collections to support debt servicing alongside the daily running of crucial programmes such as health and education or building new roads.

There have been concerns that rising debt servicing costs are squeezing funding for economic development, hindering the Kenya Kwanza administration from implementing its development programmes.

Treasury Cabinet Secretary Njuguna Ndung’u earlier said this is compounded by lower-than-expected revenues, which could impact the government’s ability to deliver on its ambitious bottom-up promises. By Brian Ngugi, The Standard 

Professor Josephat Lotto and Professor John Latham CBE

Coventry University’s Africa Hub is continuing to forge positive new relationships with the signing of a new agreement with the Institute of Finance Management (IFM) in Tanzania. 

It is hoped the memorandum of understanding (MOU) will lead to research collaboration, new PhD programmes, innovation projects and potentially the development of joint bids for consultancy projects. 

The IFM is recognised as the leading higher education institution in Tanzania for finance and economics. Its main campus is in Dar es Salaam, with others located in Dodoma, Simiyu and Mwanza. 

Founded in 1972, IFM is the oldest higher education financial institution in Tanzania with more than 38,000 alumni and around 15,000 students currently enrolled in both undergraduate and postgraduate degree programmes. 

Professor Silas Lwakabamba, Regional Managing Director of Coventry University’s Africa Hub, said: “The aim of this MOU is to open up more opportunities for staff and

MOMBASA, Kenya, Nov 10 – Cult Leader Paul Mackenzie has been found guilty of being in possession of and distributing non-classified films.

In her ruling, Senior Principal Magistrate Olga Onalo further ruled that Mackenzie was guilty of operating a filming studio without a valid license.

Onalo stated that Mackenzie conducted films using the Times Television without the approval of the Kenya Film Classification Board.

He was also found guilty of being in possession and distributing Films which have not been classified contrary to Section 12 of the Films and Stage Plays Act Cap. 222.

The magistrate opined that Makenzie committed both offenses jointly with others not before court on 11 January 2019 and 11th April, 2019, at Good News International Church in Malindi Township, Malindi Sub-County, within Kilifi County.

In her ruling, Onalo stated that the prosecution through Senior Prosecution Counsel Joseph Mwangi Prosecution Counsel Kennedy Kirui proved the case against Mackenzie beyond any reasonable doubt.

The court ruled that the accused failed to dislodge himself from the evidence of the four prosecution witnesses and exhibits including videos of Mackenzie’s radical preaching.

The court ruled that Mackenzie admitted in that Times Television belong to his church, Good News International where detective recovered DVD films containing sermons on end time items in his office.

“Once again in the DVDs watched in court, the court found one titled “Ndoto Obama Coming Edited” and the broadcast started off with the title “watch end time messages everyday” he added too that he knows his end time messages are on you tube and that it is he who uploaded them,”

However, the trial magistrate acquitted him of the offence of inciting children against attending school and further using the films to incite Christians against Hindus, Buddhists and Muslims on their religion.

The matter has been scheduled for mention on 1 December 2023 with the court granting prosecution leave to file submissions on sentencing.

The court also ordered that a pre-sentence report to file by the Probation and Aftercare services which report should capture the sentiments of the complainant which is the state. By Anita Wambui, Capital News