Kitui County Debt Policy and Borrowing Framework 2020

Abstract

The policy is meant to act as a guideline for sources and cost of debt management practices of the county government including the issuance process, management of the debt portfolio, and adherence to various laws and Regulations governing debt contracting and management. With this policy, there will be improvement in the quality of decisions, better articulation of policy goals, clearer guidelines for the structure of debt, and a demonstration of commitment to long-term capital and financial planning. The policy emphasizes the need to adhere to the laws and Regulations governing public debt management. This is a good signal to the credit/debt rating agencies and capital markets that the government is committed to ensuring debt sustainability and therefore is likely to meet its debt obligations in a timely manner. However, there are both legislative and procedural gaps that need to be addressed to guide debt management in Counties in a way that reduces risks and cost of public debt. The policy, prepared in line with the best practices will serve as a guide to all parties involved in public debt management in an Endeavor to effectively guide public borrowing practices and laws and coordinate decisions in debt management..