Kenya’s public debt is expected to reach 60% of GDP in 2022. The government’s target is to reduce this ratio to 55% of national wealth. And to begin with, the Head of State declared war on administrative dues for private operators. Many managers of SMEs in Africa would dream of having a William Rudo at home.

The President of the Republic of Kenya, William Ruto, on Monday, March 6, approved an additional budget of 200.7 billion shillings, or $1.5 billion in additional appropriations. According to a press release from the Presidency, the move is aimed at ensuring uninterrupted delivery of services to the people during the financial year ending in June. At least one-third of these resources ($465 million) will be earmarked to settle unpaid bills from the administration to private operators.

The rest will fund various sectors such as education, employment and agriculture. “Recruitment of additional teachers 6 billion shillings, school meals under the National Council for Nomadic Education 2 billion shillings, drought mitigation 10 billion shillings and fertilizer subsidy 15 billion shillings”, recounts the memo distributed by the President.

Kenya no. 1’s decision comes a week after it announced its intention to lower the public debt ceiling to 55% of gross domestic product (GDP) to ensure debt sustainability.

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