Wednesday October 23, 2019 - The United States government has cancelled the construction of Sh 300 billion Mombasa – Nairobi highway until the country is able to manage her raising public debt.
The US had contracted a firm to expand the highway for Sh300 billion, but the latest directive means no activities will take place on the ground until further notice.
Making the announcement, US ambassador to Kenya, Kyle McCarter, said Kenya must first regulate her debts before the US constructs the highway in coming years.
“Kenya has hit a debt ceiling… the onus is on Kenya to put its debt in order.”
“We don’t want to put debt on Kenyans. We want to do business in a transparent and ethical way.” McCarter said.
Kenya’s total public debt is currently around $60 billion (Sh6 trillion), or 63 per cent of the GDP.
In other words, the country owes more than half the value of its economic output, which is in breach of the statutory 50 per cent debt-to-GDP ratio in present value terms.
The Kenyan DAILY POST