Ruto's Cabinet Moves To Replace Ksh10 Trillion Debt Ceiling

President William Ruto's Cabinet has approved for transmission to Parliament, legislative proposals seeking to replace the Ksh10 trillion nominal debt ceiling.

In a dispatch sent by the Executive Office of the President on Tuesday, February 28, the move will see the debt limit replaced with a debt anchor set at 55 per cent of GDP in present value terms.

The move was reached in line with the global best practice on Debt Limit Policy, and in furtherance of the Administration’s quest to realize inter-generational equity through sustainable debt management.

"Cabinet considered the legislative proposal to harmonize the definition of ‘Public Debt’ in the Public Finance Management Act, 2012 and the attendant Regulations with the spirit and letter of Article 214 (2) of the Constitution of Kenya," read the dispatch from Cabinet in part.

The nation’s top policy organ also witnessed President Ruto allocate more powers to Prime Cabinet Secretary (CS) Musalia Mudavadi, tasking him with overseeing performance management across all ministries, state departments, and state agencies.

"This is expected to entrench productivity as the Administration’s mantra while also enhancing accountability. To realise this objective, the Administration’s first contracting cycle will crystalise the ministerial priorities approved during the Cabinet retreat held at the beginning of the year," the statement read in part. 

The Cabinet also approved a further Ksh4 billion to mitigate the drought situation in the country after they received a status report on the ongoing drought as well as the support being rendered to school-going children through the school feeding programme. 

The task of conclusively eradicating cattle rustling and banditry attacks in the North Rift region that had in part been ‘normalized’ by the affected communities as a cultural way of life was placed as a top priority of the Administration. 

On education, the Cabinet sanctioned early preparations for the 2023 KCSE, KCPE and KPSEA examinations.

The Cabinet also approved the granting of Host Country Status to Plan International, as it seeks to operationalize its global headquarters in Kenya.

Plan International is an internationally acclaimed not-for-profit humanitarian and development organization that advances children’s rights and equality for girls. Established in 1937, it has an active presence in 75 countries across the world.