{
  "id": 9787280,
  "title": "Experts warn securitization frenzy to weaken future revenue streams",
  "url": "https://urgent.news/2026/09/25/experts-warn-securitization-frenzy-to-weaken-future-revenue-streams",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-25T15:13:36.000Z",
  "source": {
    "name": "KBC",
    "slug": "kbc",
    "url": "https://www.kbc.co.ke/experts-warn-securitization-frenzy-to-weaken-future-revenue-streams/"
  },
  "original_language": "en",
  "account": "Kenya's current administration is facing criticism for rapidly securitizing key funds, which could weaken future revenue streams and impact essential social programs. This issue was highlighted during a forum organized by the Kenya Editors’ Guild and the International Republican Institute. Experts argue that the government's reliance on securitized funds has already created a risk to the ordinary revenue collection base, as it has used the funds to finance infrastructure projects.\n\nOne of the most affected funds is the Road Maintenance Levy Fund, which imposes a charge of Ksh 7 per litre of fuel to finance various road projects. This means that every citizen, directly or indirectly, is paying this fee to repay the debt. Moreover, the securitization process is being conducted off-balance sheet, with minimal input from Parliament, making it difficult for the public to understand the terms and implications of the agreements.\n\nThe lack of transparency in the securitization process is a major concern, as it increases the cost of doing business and living for Kenyans. The International Monetary Fund (IMF) has already expressed caution regarding this financing model, stating that it should be considered part of Kenya's total outstanding public debt. The use of these funds as collateral has also come under scrutiny due to the Kenya Revenue Authority's (KRA) failures to meet collection targets, which in turn contributes to the growing public debt.\n\nAs of June 2024, Kenya's total public debt stood at Ksh 13 trillion, with domestic debt accounting for Ksh 7.33 trillion and external debt at Ksh 5.68 trillion. Domestic debt makes up 55% of the total debt, indicating that the country owes more to local institutions than to foreign creditors. In the fiscal year 2024/25, Kenya reported a budget shortfall of Ksh 1.2 trillion, and this gap is expected to widen in the current year due to the upcoming general elections.",
  "summary": "Experts are warning that ongoing securitization of key funds by the current administration could affect funding of essential social programmes in the future on the back of persistent revenue shortfalls. Speaking at a forum organised by the Kenya Editors’ Guild (KEG) and the International Republican Institute (IRI), the experts said Kenya risks eroding its ordinary […] The post Experts warn…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}