Business news feedKenya raises domestic borrowing target by 14 pct


Posted on Thursday, 16 June 2011 15:45

Kenya raises domestic borrowing target by 14 pct

June 16, 2011, 2:57 pm

By Helen Nyambura-MwauraNAIROBI (Reuters) - Kenya has increased its domestic borrowing target for the current fiscal year by 14 percent to 120 billion shillings to fund the implementation of a new constitution, a senior finance ministry official said.Kenyans passed a new charter at a referendum in August which they hope will overhaul how the country is run by defining a new political and governance platform.The new constitution was one of the reforms agreed upon to end weeks of murderous violence that followed a botched election at the end of 2007."We will borrow 120 billion as opposed to 105 billion, which we had expected to borrow," Joseph Kinyua, permanent secretary at the Treasury, told Reuters."The reason for the additional increase is associated largely with the requirements for the implementation of the new constitution."Kenya's fiscal year starts in July to the end of June.The government has set up a commission to oversee several new laws that will give the constitution legs to stand on.The new charter demands changes such as establishing regional grassroot governments that will have a share of the national budget and a land commission to look into historic injustices on that front.Finance Minister Uhuru Kenyatta said in a budget speech in June that borrowing from local markets would be 105.3 billion shillings. The cabinet has since passed a supplementary budget of 3.5 billion shillings to pay for the implementation of the new law.A central bank official has said the Treasury has so far borrowed 51 billion shillings of the targeted 82 billion for the first half ending in December.Total domestic debt has risen to 704.7 billion shillings in September, from 660.3 billion at the end of the previous fiscal year, the latest Monthly Economic Survey by central bank showed.Domestic debt accounted for 54.4 percent of total public debt at the end of the first quarter in September 2010.

Subscriptions Digital EditionSubscriptions PrintEdition










Music & Film



Keep up to date with the latest from our network :


Connect with us