The Senate has approved National Treasury’s proposal to raise the debt ceiling to Sh10 trillion from Sh 9 trillion
27 Senators backed the proposal while 3 Senators voted against, the raising of the debt ceiling means the incoming government will be at liberty to borrow money to address it's budget deficit
Senators drawn from both Azimio La Umoja One Kenya Alliance and their counterparts from Kenya Kwanza differed on the need to increase the debt ceiling, with the DP Ruto led faction terming the borrowing appetite by the government as one that is strenuous to the economy and that will negativley impact the cost of living.
Their argument were however rebuttaled by Senators supportive of the handshake between President Uhuru Kenyatta and Azimio Presidential Candidate Raila Odinga who maintained that having debts would not negatively affect the country as long as the money is used for the intended purpose it was borrowed for.
The National Treasury is set to use Sh846 billion from the loan to address the budget deficit in the fiscal year starting July 1.
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