MPs have approved the conversion of Kenya’s debt ceiling from the current Sh10 trillion to a debt anchor as a percentage of gross domestic product (GDP), removing the final hurdle for Kenya to align with global best practices backed by the International Monetary Fund (IMF).
The Public Debt and Privatisation Committee approved the threshold of the debt anchor of 55 percent of GDP in present value terms. The committee has, however, provided a window not exceeding five per cent to accommodate the current debt threshold to GDP which stands at 60 percent.
