Treasury Principal Secretary Dr Chris Kiptoo has ordered an audit of operations at the Public Debt Management Office (PDMO) as the government steps up efforts to strengthen debt sustainability and improve how Kenya manages its borrowing.

🇰🇪 Breaking It Down

The directive was issued during a consultative meeting on Tuesday, August 4, with staff from the Public Debt Management Office, where the PS reviewed the directorate's strategic priorities and outlined measures aimed at making public debt management more efficient, accountable and responsive to the country's financing needs.

Kiptoo directed the office to strengthen resource mobilisation by diversifying Kenya's financing sources and borrowing instruments, saying a broader funding base would help reduce risks associated with relying on limited financing options.

"We must enhance resource mobilisation through diversified financing sources and instruments, deepen the domestic debt market and strengthen liability management operations," Kiptoo said during the meeting.

📌 What You Need to Know

The Treasury's latest push comes as Kenya continues to prioritise prudent debt management to ensure government borrowing supports development while keeping public debt on a sustainable path.

Part of the reforms will involve deepening the domestic debt market by attracting more investors into government securities and improving the efficiency of local borrowing, reducing dependence on external financing over time.

The PS also instructed the Public Debt Management Office to strengthen liability management operations, which include measures such as refinancing or restructuring existing debt to ease repayment pressures and reduce borrowing costs where possible.

Kiptoo further directed the directorate to identify key policy, institutional and operational bottlenecks affecting its work and develop a time-bound action plan to address the challenges.

"The Directorate should identify key policy, institutional and operational bottlenecks and develop a time-bound action plan to address them," he said.

The Public Debt Management Office is responsible for overseeing Kenya's borrowing strategy, managing government debt and advising the National Treasury on financing options that balance borrowing costs with financial risks.

📰 Source: Kenyans.co.ke