Authority will tame debt appetite: ICPAK

By Harrison Kivisu
People Daily

The Institute of Certified Accountants of Kenya (ICPAK) is banking on the new Public Debt Bill, that seeks to form a debt management authority, to tame growing appetite for debt.

Speaking in Mombasa yesterday, ICPAK national deputy chair George Mokua said the agency is ready to present recommendations to Parliament before the Bill is passed.

“We will make our submissions to Parliament as a body, we have a role as a body to ensure the country does not succumb to unregulated borrowing, ”said Mokua.

The bill currently on third reading in the parliament was presented by Nambale Member of Parliament Sakwa Bunyasi and is expected to become a law by December 2021. Bunyasi said the public debt management bill currently being prepared will cure the increasing appetite for borrowing by the government.

The Bill also seeks to create a debt management Authority with a board in place to advise the treasury when seeking to borrow money.

Borrowing disparities

“There is no debt register to ensure transparency in bills; today we have disparities in borrowing. There should be openness so that we can be able to know how to man-age it.

The bill seeks to rationalise the government expenditures as well as place a debt ceiling that the government should not surpass,” said Sakwa. He said the estimated cost of the authority is Sh1.5 billion a figure termed reason-able as compared to currently overspending through public debts.

“A financial cost assessment was done by the central bank and setting up the bill will ensure little spending,”Sakwa said.

ICPAK chair Rose Mwaura challenged corporate leaders to avoid corruption and deepen integrity. “I therefore urge all of us to exhibit a strong character. Exhibit honesty, integrity, trustworthiness, and ethics ,” she said.

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