THE 2014 PFM AMENDMENT THAT INSTITUTIONALISED THE DEBT BUSINESS

Kenya’s debt crisis did not emerge overnight. In my view, one of the most consequential policy changes was the 2014 amendment to the Public Finance Management Act, particularly Section 50(7)(d), which opened the door for pre-negotiated borrowing expenses to be paid directly at the closing of external loans. “…applied, in part, to pay at closing, […]