Shilling to cost taxpayer Sh100b extra
10 October 2011, 10:08
Kenyans will pay Sh100 billion more to service foreign debt estimated at Sh1.2 trillion should the shilling continue to fall against the US dollar.
Experts have cautioned the Central Bank and the Treasury to pursue policies that would stabilise the local unit or risk losing out in funding of crucial development projects.
In an interview with The Standard, Financial analyst Billow Kerrow said the shilling’s slump against other world major currencies means taxpayers will shoulder a huge burden as funds are diverted from development projects to service debts.
Parliamentary Finance Committee chairman Chris Okemo confirmed Kerrow’s assertion that if all currencies appreciate at the expense of the shilling, then the debt burden rises by a corresponding margin.
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