Senior Management

 

Mission

To contribute to the rapid and sustainable development of the Kenya economy through prudent public debt management.


Vision
To achieve excellence in effective management of public debt.

Debt Management is responsible for the management of Kenya Public debt. The department is currently being transformed into Debt management Office within the Ministry of Finance. This process is part of the wider reform agenda to strengthen Government financial management. The transformation in the debt includes;

1. Effective organizational structures with front, middle and back offices
2. Legal reform
3. Comprehensive public service debt database
4. Capacity Building

Objectives

1. To minimize the cost of financing the government's fiscal deficit, taking into account risk
2. Develop debt policies that are consistent with macroeconomic policies;
3. Foster growth of the domestic debt market and create a sustainable local interest rate yield curve;
4. Monitor and if need be, manage other sources of sovereign risk e.g contingent liabilities, private sector short term debt, e.t.c
Strategies

1. Reduce the degree of volatility of annual debt service costs and contain the government's exposure to risks;
2. External borrowing to be contracted on concessional terms only;
3. Timely settlement of debt service to avoid arrears and penalty payments
4. Establish a Primary Dealers System to promote vibrant money and capital markets.

 

    DSAs conducted in Kenya have shown that the debt is sustainable
    The HIPC threshold ratios have equally shown the same.
    Kenya has gone to Paris Club three times for rescheduling
    1994, 2000, and 2004
    In 2000, Kenya rescheduled US$ 298 Million
    The last was between 6th and 16th January 2004
    US$ 350 Million was rescheduled for consolidation period of 3 years
    US$ 65 Million for this Financial year
    Japan rescheduled US$ 197.4 (56%) Million
    Kenya has been rescheduling under Hourston Terms