The Public Debt and Privatisation Committee chaired by Hon. Abdi Shurie (Balambala) was briefed by the Principal Secretary of National Treasury  Dr. Chris K. Kiptoo on the Consolidated Fund Service Expenditures for Financial Year 2023/24.

 Dr. Kiptoo informed the Committee that the gross public debt as of 30^th March 2023 increased by Kshs. 488.1 billion to Kshs. 9.6 trillion, which is 66 percent of the Gross Domestic Product (GDP) in nominal terms; compared to Kshs. 9.1 trillion at 67 percent of GDP as of the end of December 2022.

He added that, as per the 2023/24 Budget Estimates’ fiscal framework, the external debt disbursement is estimated at Kshs.607.1 billion, out of which Kshs.475.6 billion will be used for external debt repayment, leaving net foreign financing of Kshs. 131.5 billion. In addition, the net domestic financing will be Kshs. 532 billion. This financing is close to a 50:50 ratio financing strategy of the Financial Year 2023/24 Medium-Term Debt Management Strategy (MTDS).

 Further, Dr. Kiptoo told the Committee that,  "there will be an increase in ordinary pension due to the increase of the biennial pension at a rate of three percent beginning 1^st July 2023, pursuant to the Pensions Increase Act". 

On the matter of compliance with Parliament resolutions in the 2023 Medium-Term Debt Management Strategy (MTDS) in relation to the financing of 2023/24 Budget Estimates, which includes the National Assembly tabling regulations for the establishment of a sinking fund dedicated to public debt servicing, the PS noted that the National Treasury has developed draft guidelines for the operationalization of a sinking fund in conformity with Regulation 206 (1) of the Pubilc Finance Management (National Government) Regulations (2015), to provide liquidity for timely funding for the redemption of government securities and payment of expenses. The guidelines, however, will be subjected to a public participation process before submission to Parliament for consideration and approval.