Kenya’s debt hits sh.3.5 trillion as treasury insist it is sustainable

National Treasury CS Henry Rotich (right) with China ambassador to Kenya Dr Liu Xianfa (left) during a past function. PHOTO: COURTESY.

Nairobi. KENYA: Kenya debt has hit sh. 3.5 trillion  as treasury assures Kenyans that the government is capable of sustaining the debt.

Speaking before parliamentary finance and led by Ainamoi legislator Benjamin Lagat on Thursday ,treasury
Principal secretary Dr Kamau Thuge said Kenyan debt is within a threshold which the country will be able to sustain.

“The debt is 53 % of GDP and GDP is 7.5 trillion ,the total debt should be 3.5 trillion.” Said Thige

He differed with some critics who have been raising red flags concerning Kenyan debt; insisting that it is a sustainable debt based on sustainability analysis that has been done in the medium term.

On the other hand, Thuge told the committee that the government will chip in and revive the Kenya Air ways and Uchumi super markets warning their revival is a challenge the government has to contend with.

He insisted that such a revival is core adding that if Kenya airways goes down it will will hurt the economy and image of the country.

“The institutions like KQ we will try to help , KQ is a flagship company for Kenya and i think we should do as much as we can to ensure it doesn’t go down ,may be KQ is making losses it has a wider implications on the economy and image of Kenya.”Thuge said.

However , he indicated that Uchumi and Kenya airways will be expected to pay back loans which they will offered upon recovery.