New details have emerged about how the government, through the Treasury, has been borrowing up to Ksh2 billion every day.
According to a report released by the Central Bank of Kenya (CBK), the State borrowed up to Ksh126.4 billion between January and February this year which averaged at Ksh2.1 billion daily.
Business Daily further revealed that broken down, most of the borrowing came from the domestic market.
The publication explained that the country's domestic debt rose by Ksh142.6 billion to stand at Ksh2.69 trillion while the external debt reduced by Ksh22 billion to Ksh2.7 trillion.
Today, the total national debt stands at Ksh5.4 trillion with most of the borrowing upped through treasury bonds and bills.
It was further disclosed that the money s borrowed from the local banks which has disadvantaged the private sector who are struggling to secure loans from the same lenders.
These revelations come roughly a week after a delegation from Kenya went to China to secure another Ksh350 billion for the completion of the ongoing SGR construction.
According to an earlier Kenyans.co.ke report, Uganda’s president Yoweri Museveni’s trip to Kenya was arranged by Uhuru keen to persuade him to back the project to enable Kenya to secure the much-needed funds to push the railway line to Kisumu from Naivasha.
Confirming the reports at the time, Kenya Railways Acting Director Philip Mahinga revealed that the corporation was in talks for more funding of a system that will ensure the railway, its passengers, goods and equipment were secure as the railway line passes through some sparsely populated areas.
“We all know that the first phase of SGR from Mombasa to Nairobi cost Ksh327 billion and the second phase Ksh150 billion. For phase 2B, negotiations between the two governments are on so I will not give any figure at the moment,” stated Mahinga.
