The National Treasury Cabinet Secretary Ukur Yattani has revealed plans to source Ksh 150 billion from local lenders to finance development projects in the country in the medium term.
The CS, however, says his focus going forward is to start restructuring public debt portfolio and retire expensive commercial loans replacing them with concessional loans in a bid to free up funds for development.
The government projects the economy to grow at 5.6 per cent growth this year as it seeks to reach a 7 per cent growth in its medium plan through ongoing investments in strategic priority areas including the Big four programmes.
According to the Central Bank of Kenya, as of September 2019, total public debt stood at Kshs 5.97 trillion shillings.
Domestic debt amounted to Ksh 2.86 trillion while external debt amounted to Kshs 3.11 trillion.
Yattani who took charge of the National Treasury and Planning docket since the ouster of Henry Rotich in July last year and only became the substantive CS Tuesday after cabinet reshuffle is promising to continue with fiscal consolidation instituted two years ago in order balance revenue and expenditure.
This is expected to keep the fiscal deficit under control.
Part of the Ksh 150 billion will be channelled towards financing only projects with diverse multiplying effects such as agriculture and manufacturing.