In a cabinet meeting chaired by the President yesterday at State House Nairobi, Cabinet approved the transmittal to Parliament of the legislative proposals replacing the nominal debt ceiling of Ksh. 10 trillion with a debt anchor set at 55pc of GDP in present value terms.
The Cabinet has considered the legislative proposal to harmonise the definition of ‘Public Debt’ in the Public Finance Management Act, 2012 and the attendant Regulations with the spirit and letter of Article 214 (2) of the Constitution of Kenya.
According to a dispatch sent to the media, this is in keeping with the global best practice on Debt Limit Policy, and in furtherance of the Kenya Kwanza administration’s quest to realise inter-generational equity through sustainable debt management.
Kenya’s stock of public debt currently stands at Ksh9.145 trillion according to the Central Bank of Kenya (CBK).
At the same time, to entrench the productivity of the Public Service, Cabinet was apprised of the outcome of the FY 2021/22 Performance Contracting Cycle of all Ministries, State Departments, and State Agencies.
“Whereas the results are a vivid account of the priorities set and successes achieved during the previous Administration, the results also affirm the enduring nature of the Government of Kenya.” The dispatch read.
As part of deepening a performance based culture within Government, the performance management function has been elevated and is now vested in the Office of the Prime Cabinet Secretary.
This is expected to entrench productivity as the Administration’s Mantra while also enhancing accountability.
To realise this executive office of the President objective, the Administration’s first contracting cycle will crystalise the ministerial priorities approved during the Cabinet Retreat held at the beginning of the year.
Similarly, Cabinet considered the National Migration Policy meant to position Kenya’s human resource at the heart of the nation’s growth strategy.
According to Cabinet this seminal policy is expected to enhance Kenya’s international presence and influence by better coordinating labour migration and the protection of the rights of migrant workers.
“The policy will address the profound internal systemic inefficiencies that deny us as a country the opportunity to fully explore the immense opportunities available on the international stage.” Stated the dispatch.
It will have the added benefit of increasing the number of Kenyans working lawfully and safely abroad, which in turn is expected to result in a doubling of diaspora remittances to Kenya which is the leading foreign exchange earner.
