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Redefining public debt: The IMF, Kenya clash
The Treasury emphasises that not all state corporation debt is guaranteed by the government, and therefore should not automatically be classified as sovereign debt.
The ongoing debate between the International Monetary Fund (IMF) and the Kenyan government over the true size and definition of public debt is no longer a technical accounting matter. It is a fundamental question about how sovereign debt itself should be understood, measured, and managed in developing economies.
At the centre of this debate is a recent IMF position that Kenya’s public debt should be recalculated to include securitised borrowing linked to major infrastructure projects such as the standard gauge railway (SGR), as well as pending bills and liabilities held outside the traditional government balance sheet.
