Borrowing 

National Government Borrowing 

Legislative Framework

• Parliament may prescribe the terms on which the national government can borrow and impose reporting requirements​​

Reporting Requirements

• The Cabinet Secretary responsible for finance must present information concerning any particular loan or guarantee, including details on the total indebtedness, use of loan proceeds, repayment provisions, and progress in repayment, within seven days of a request from either House of Parliament​​.

County Government Borrowing

Conditions for Borrowing: 

A county government may borrow only if:

• The national government guarantees the loan.

• The borrowing is approved by the county government’s assembly​​.

Loan Guarantees by National Government 

Terms and Conditions:

 An Act of Parliament will prescribe the terms and conditions under which the national government may guarantee loans​​.

Annual Reporting:

The national government must publish a report on the guarantees it provided during the financial year within two months after the end of each financial year​​.

Public Debt

Charge on Consolidated Fund: 

The public debt is a charge on the Consolidated Fund, but an Act of Parliament may allocate all or part of the public debt to other public funds​​.

Definition of Public Debt: 

Public debt includes all financial obligations related to loans raised or guaranteed and securities issued or guaranteed by the national government​​.