Interest Payment on Public Debt Worrying

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669

The country’s interest rate on public debt rises to unacceptable 16% amounting to a whopping 1.7 trillion shillings according to the auditor general’s report. The increase has been attributed to the high cost on domestic borrowing and an increased share of bilateral loans which are not concessional. Economists now say this rise is irreversible and the rate is not sustainable which will unfortunately have inevitable consequences on the economy.