It was Benjamin Franklin who said: “Rather go to bed supperless, than rising in debt.” Kenya’s external debt stands at Sh4.5 trillion, 54 per cent of it, or Sh2.45 trillion being foreign, which is rising to risky levels, higher public deficits and debt levels are not necessarily undesirable.
When Kenya borrows to pay for infrastructure investment that can boost long-term growth, which in turn generates revenues to service the higher debt but more than 70 per cent of our budget goes to recurring expenditure.
