|Approval Date||27 Apr 2020|
|Signature Date||23 Sep 2020|
|Planned Completion Date||30 Jun 2024|
|Last Disbursement Planned Date||30 Jun 2023|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The Public Debt Management Support Project (PDMS) will finance technical assistance and capacity building activities to address capacity and knowledge gap in identified areas for effective public debt management and borrowing in Kenya. It falls under the country’s medium-term development goal as outlined in the Third Medium Term Plan (MTP III 2018–2022), aims at transforming the economy to achieve inclusive and broadbased economic growth. The project will enhance the capacity of the National Treasury (NT) to better balance the government's financing needs and its payment obligations over the medium to long run, consistent with a prudent degree of risk. Reducing vulnerabilities to risks of public debt and maintaining debt within sustainable levels is critical for Government’s efforts to attain fiscal consolidation policy in order to safeguard macroeconomic stability and reduce the pace of growth of the public debt. It is structured around two components to support the Government’s efforts in addressing these challenges; namely: (i) Strengthen public debt management functions; and (ii) Strengthening institutional capacity for transparent, accountable, and results-based debt management. The project will be implemented over a period of 24 months. The estimated total cost is USD 1,385,680, of which the Bank will provide UA 800,000 (USD 1,110,080), to be funded under the MIC TAF.
The goal of the project is to strengthen public debt management capacity of the PDMO for transparent, accountable, and effective management of public debt and borrowing. The ultimate objective is to support the GoK to better manage the level and composition of national public debt, national guarantees and other financial obligations of national government within the fiscal consolidation framework and develop a framework for sustainable debt control.
The direct beneficiaries of the project are government officials involved in debt management activities. This will be mainly through technical assistance, training, mentoring and study tours. In the long term, the positive impact of the project on the debt management transparency and efficiency will also help reduce the debt cost and sustainability. The project will ultimately indirectly benefit all citizens of Kenya. The fiscal consolidation reforms that aim at maintaining macroeconomic stability and improving the efficiency and effectiveness of public spending would benefit all Kenyan citizens, as more reliable resources would be available for propoor activities (e.g. education, health and social protection services).
Ministry of Finance
Middle Income Countries Fund
|Last Update||24 Mar 2023|