Fitch vs Treasury: Is SA’s debt outlook improving?
‘Stats SA figures showing that the economy is actually bigger than we thought is not going to affect the debt numbers as such – but it’s certainly going to affect the ratio of debt as a percentage of GDP’: Dawie Roodt, Efficient Group.
The National Treasury has faced scrutiny from Kenya's Parliament over the substantial interest bill of Sh533.7 billion paid on domestic debt in the 2023/2024 financial year. The Public Accounts Committee (PAC) raised concerns about this cost of public borrowing during their examination of the Auditor-General's reports for the year.
The committee, chaired by Butere MP Tindi Mwale, questioned Treasury Principal Secretary Chris Kiptoo regarding the high cost of servicing domestic debt and called for a national discussion on public borrowing. Kiptoo attributed the increased reliance on domestic borrowing to limited access to external financing during the period and said that interest rates on local borrowing were high due to market conditions.
The Treasury PS also mentioned that the shilling had been under pressure before the government made a partial repayment of its Eurobond in 2024. Domestic debt currently accounts for 57 percent of Kenya's public debt, while external debt makes up the remaining 43 percent.
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- Treasury questioned over Sh533.7bn domestic debt interest bill capitalfm.africa
