The Public Debt Management Office (PDMO) is set to receive a new director as Raphael Owino steps in to replace Dr Haron Sirima.
This shift marks a continuation of expertise in managing the country's debt, with Owino taking the reins from a fellow seasoned Central Banker.
Dr Sirima's departure follows a major financial milestone for Kenya, the repayment of the final $560 million (Ksh72 billion) million installment of its $2 billion (Ksh291.7 billion) Eurobond on June 21.
With this achievement, the spotlight now turns to Owino, who will lead Kenya's liability management efforts amidst a backdrop of evolving strategies and ambitious goals.
Owino's appointment coincides with President William Ruto's recent announcement of an audit of the country's public debt, signalling a renewed focus on transparency and accountability.
"The over Ksh10 trillion debt is in the public domain. But I am prepared to put in forensic experts so that we can all appreciate, yes this is what we owe and agree on how we will pay, Ruto asserted in a roundtable interview with media on Sunday, June 30.
"I was in Korea and learned that when they had a problem of debt, the whole nation came together... people contributed gold, others many things because they wanted to pay their national debt. Maybe we will need that conversation once we are all clear that this is public debt," added Ruto.
As he steps into his new role, Owino will be tasked with exploring innovative solutions, including debt swaps and the issuance of Samurai and Panda bonds.
The Public Debt Management Office, established under Section 62 of the Public Finance Management Act, operates within the National Treasury.
The office's mandate includes minimising the cost of public debt management and borrowing over the long term, taking into account associated risks. It also aims to foster the development of market institutions for government debt securities and ensure equitable sharing of public debt benefits and costs across generations.
The PDMO is structured into three technical departments, each headed by a director. These departments are Resource Mobilisation, Debt Policy, Strategy and Risk Management, and Debt Recording and Settlement.
Among the core functions of the PDMO are maintaining a reliable debt database for all government loans, preparing and updating the annual medium-term debt management strategy, and implementing the national government borrowing plan.
The office also plays a crucial role in issuing government debt securities on behalf of the National Treasury and monitoring all borrowing and debt-related transactions to ensure adherence to established guidelines and risk parameters.
Owino's leadership will be instrumental in navigating the complexities of public debt management. His role will involve processing loan guarantees, assessing and managing risks in national government guarantees, and transacting in derivative financial instruments.
