The National Assembly is contemplating increasing the powers of the planned debt management authority.
Legislators want to empower the National Debt Management Authority to conduct feasibility studies for projects to be funded by loans.
While debating the debt management authority bill the legislators said most projects funded by loans have minimal returns which is making Kenya struggle with repayment plans.
Kenya’s debt now stands at 7.7 trillion shillings according to official data from the Central bank of Kenya.
In June this year the National Assembly raised the debt ceiling to 9 trillion shillings giving the treasury more room to borrow.
Parliament is now calling for complete independence of debt management authority.
The Bill that seeks to establish the authority is poised to be read for the third time as it edges closer to becoming law.
The national assembly wants the regulator to have powers carry out feasibility studies for projects before they are budgeted for and loans approved.
Parliament is also proposing that all Parastatal loans guaranteed by the National Treasury be listed under the National Debt Management Authority.
If the authority is passed into law, the office will, among other things, be expected to list all government loans complete with the guarantee agreements, nature and duration of payments.