PPPs will reduce debt in infrastructure development
The Star| Karen Kandie|12th August 2021
Following the conclusion of the East African region’s 2020-21 budget cycle, together with the announcement of the 2021-22 budget estimates and targets, it is no surprise that the role of public debt in financing the region’s developmental ambitions and targets remains a widely debated topic.
Indeed, as previously discussed in this column, the East African region’s public debt profile remains relatively high on the back of increased spending pressures, particularly in light of the Covid-19 pandemic, coupled with ambitious infrastructure development projects.
Stated in numbers, it is noted that Kenya’s public debt burden stood at 69.6 per cent of GDP as at December 31, 2020, as compared with 71.3 per cent, 55 per cent and 49.9 per cent with respect to Rwanda, Tanzania and Uganda, respectively.