The Government of Kenya has recorded a total loss of KSh36 Billion in the last two weeks of September.
According to data obtained from the Central Bank of Kenya (CBK), the stock of domestic debt stood at Sh2.154 Trillion on September 15 up from Sh2.118 Trillion at the beginning of the month totalling Sh40 Billion loss.
This rise in domestic debt highlights the increase in demand for funds to cover the repeat presidential poll set for October 26.
Last week, President Uhuru Kenyatta chaired a Cabinet meeting that approved a Sh10 Billion budget for the Independent Electoral and Boundaries Commission (IEBC) to fund the repeat poll.
This was contrary to IEBC's request of Sh12 Billion and Treasury estimation that the presidential election would take up to Sh15 Billion.
Two weeks ago, the Treasury responded to the debt crisis by attempting fiscal consolidation measures including a cut in non-essential expenditures like travel, monitoring, entertainment and furniture expenses.
Nonetheless, in a report posted on the Kenyan Gazette, security recurrent costs have been boosted by Sh 9.5 Billion indicating the government's commitment to improving safety during the election period.
The Ministry of Defence has been allocated Sh3.7 Billion more, the Interior Ministry Sh3.4 Billion and the National Intelligence Service Sh2.4 Billion more.
In the same report, the Government confirmed that no funds have been released to the County Governments because the schedule of disbursement has not been approved by the Senate as yet.
