The Senate voted on Wednesday, to raise the government’s borrowing ceiling to 9 trillion shillings ($87.29 billion).
The motion to raise the government’s debt ceiling garnered the support of 30 of the 47 senators.
The Ksh.9 trillion borrowing ceiling will replace the current threshold of debt in net present value (NPV) at no more than 50 percent of Gross Domestic Product (GDP) as outlined in the Public Finance Management Act of 2012.
In June this year, Kenya’s total public debt rose to 62.3% of the gross domestic product in June this year, surpassing the recommended threshold 50% of GDP in the 2015/16 financial year.
According to the senators, the increase in the ceiling will also unlock 421 billion shillings worth of loans with foreign development agencies, which have been agreed but are yet to be signed due to the current breach of the ceiling.