BUSINESS & FINANCE

National Assembly Raises Debt Ceiling to Sh10tn as Budget Deficit Nears Sh1tn

Members of Parliament have approved Treasury’s proposal to raise the debt ceiling to Sh10 trillion.

House Majority Leader Amos Kimunya said on Tuesday this will allow the National Treasury to borrow Sh846 billion to plug the budget deficit in the fiscal year starting July 1.

“..this House approves the Public Finance Management (National Government) (Amendment) Regulations, 2022 published as Legal Notice No. 89 of 26th May 2022, thus approving the amendment made to the Public Finance Management (National Government) Regulations, 2015 (principal Regulations) in regulation 26(1), by deleting paragraph (c) and substituting therefor the following paragraph- “(c) pursuant to the provisions of section 50(2) of the Act, the public debt shall not exceed ten trillion shillings,” read the Special Motion on the variation of Public Debt Ceiling.

MPs Kimani Ichungwah, Owen Baya, Robert Pukose, and John Kiarie opposed the motion saying Treasury will have a free hand to breach the new debt ceilings as long as it can explain to Parliament what caused excessive borrowing if changes to the law are approved.

 

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