Why government didn’t convert Sh537bn pending bills into bond

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The National Treasury building in Nairobi in this picture taken on March 15, 2023. PHOTO | DENNIS ONSONGO | NMG

The government shelved a plan to convert pending bills into a bond following concerns it would significantly increase the pile of debt at a time the country’s position has been classified as being at high risk of debt distress.

Securitisation of pending bills would imply the government floats a bond to offset the backlog of arrears, a proposal that was touted by Kenya Kwanza in the run-up to the August 2022 general election.

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