NAIROBI, Kenya, Jun 21 – The Senate has approved National Treasury’s proposal to raise the debt ceiling to Sh10 trillion.
This is after 27 Senators backed the proposal while 3 Senators voted against, giving the incoming government the liberty to borrow up to Sh10 trillion after raising the amount from Sh9 trillion.
Senators from both sides of the political divide differed on the need to increase the debt ceiling.
Those allied to Deputy President William Ruto said the borrowing appetite by the government is strenuous to the economy especially at this time when the cost of living has gone up.
Those supportive of the Handshake between President Uhuru Kenyatta and Azimio La Umoja Presidential Candidate Raila Odinga said that having debts would not negatively affect the country as long as the money is used for the intended purpose it was borrowed for.
National Assembly Majority Leader Amos Kimunya presented the proposal in the National Assembly, and it was passed on June 7.
During debate, Kimunya explained that raising the debt ceiling this will allow the National Treasury to borrow Sh846 billion to plug the budget deficit in the fiscal year starting July 1.
