Treasury CS Warns of Debt Limit, Reiterates Ruto's Strategy to Raise Funds

President William Ruto during the opening of the Twiga Foods Distribution Centre in Ruiru, Kiambu County on Monday, November 28, 2022
President William Ruto during the opening of the Twiga Foods Distribution Centre in Ruiru, Kiambu County on Monday, November 28, 2022
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William Ruto

Treasury Cabinet Secretary, Njuguna Ndung'u, warned the nation against taking loans after he announced that there was no headroom to accommodate more debt. 

Ndung'u, on Monday, November 28, added that the new administration was seeking other ways of funding government projects and minimising public borrowing.

The move, he noted, was meant to shield Kenyans from the burden of the increased national debt.

"Right now we do not have headroom to accommodate debt. We have to go liability management," the CS stated.

Treasury CS Njuguna Ndung'u at a past event
Treasury CS Njuguna Ndung'u at a past event
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According to Ndung'u, the government will not spend the taxpayers' money on non-essential projects.

Additionally, the government was focused on saving lives, especially when some counties were dealing with the ravaging effects of drought.

Ndung'u pinpointed the suspension and postponement of travelling in some ministries and government projects.

"Budget cuts are necessary to divert money to critical areas like saving lives. You cannot affect aggregate demands in terms of recession," he emphasised.

Notably, in early November 2022, the International Monetary Fund (IMF) vowed to disburse Ksh52 million, a section of the Ksh255 billion deal sealed by retired President Uhuru Kenyatta.

Earlier, President William Ruto called upon world leaders to help manage the country's debt standing at Ksh8.6 trillion.

"Kenya and the rest of Africa like other developing countries, need greater international partnership and cooperation to avert the economic crisis," Ruto pleaded.

The Head of State also appealed to the World Bank for funding.

During campaigns, Ruto pledged to deviate from credits as witnessed under his predecessor's reign. 

While addressing the Parliament in September 2022, he urged the Treasury to cut the national budget by Ksh300 billion to reduce overdependence on loans. 

International Monetary Fund office.
The International Monetary Fund (IMF) offices in Washington, US.
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IMF