But Kenya has been building its debt stock rapidly. “The - TopicsExpress

But Kenya has been building its debt stock rapidly. “The Government’s has been rolling over its debts over the past three decades ... Kenyans are being sunk into a debt trap,” said Judy. To understand her sentiments, she explained that Kenya’s debt works the following way: In the first year, the Government borrows A; in year two, it borrows amount B, but also amount A and A’s interest (A + Ai + B); in year three, it goes for A+ Ai + B +Bi +C, and on and on the debt spiral continues. The trouble is that revenue is not catching up with spending; in fact, the gap is getting wider. In economic jargon, this is a situation called running a fiscal deficit. Read more at: standardmedia.co.ke/business/article/2000107769/kenya-s-ticking-debt-bomb-is-on-the-verge-of-going-ka-boom?pageNo=6

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