The sports category has moved to a new website.

Worry as Kenya's costly loans double in 10 months

Commercial loans have sharply increased by Sh92 billion between July 2016 and April 2017 compared to same period previously.

___6750606___https:______static.pulse.com.gh___webservice___escenic___binary___6750606___2017___5___29___10___cash-620x330_1

The latest report on commercial loans borrowed by the Kenyan government does not give for good reading to the country’s economy.

This is after Treasury CS Henry Rotich revealed that commercial loans taken by the government more than doubled in 10 months financial year 2016-17 compared to a year earlier.

In the Statement of Actual Revenue and Net Exchequer Issues report released by Mr. Rotich, loans between July 2016 and April 2017 rose to Sh167.14 billion from Sh74.33 billion in the same period before. This reflects a sharp increase of Sh92.81 billion (124 per cent).

The country’s elevation to lower middle income economy status in September 2014 has seen it resort to borrow more commercial and semi-concessional loans as concessional loans, largely from World Bank Group's International Development Association, have been declined.

ADVERTISEMENT

The Kenya Revenue Authority collected Sh989.94 billion between July and April this financial year, the data shows, a growth of 11.46 per cent, or Sh101.82 billion, compared to Sh888.12 billion total tax collected the year before.

The tax collected made up for 63.33 per cent of the Sh1.5 trillion total revenue the government made in the period of July 2016 to April 2017 reflecting a 10 per cent increase from the Sh1.415 trillion generated in the first 10 months of the 2015-16 financial year.

The Treasury has failed to meet its revenue generation target mainly due to shortfalls in income tax as well as collections from fees, charges, court fines and investment income and Imports Declaration Fee.

The report comes amid worry over Jubilee’s borrowing frenzy which has seen Kenya’s public debt increase to a huge Sh4 trillion as of March 2017.

ADVERTISEMENT

That means each Kenyan owes creditors at least Sh86,596…and the number keeps growing.

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

10 African cities with the highest crime index at the start of 2024

10 African cities with the highest crime index at the start of 2024

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Diwali 2022: Is Monday a public holiday in Kenya?

Diwali 2022: Is Monday a public holiday in Kenya?

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Details of Ngina Kenyatta's luxurious restaurant

Details of Ngina Kenyatta's luxurious restaurant

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

10 African countries with the strongest military power in 2024

10 African countries with the strongest military power in 2024

ADVERTISEMENT