A ground and air incursion into the conflict-torn Horn of Africa country that began on Sunday has fuelled concerns that Kenya, east Africa’s largest economy, might spend its way to a higher debt to GDP ratio from the present 43 percent level.
“Security is very key to even other initiatives you are doing to develop your nation… the security intervention that is taking place is going to cost the Kenya government money,” Joseph Kinyua told Reuters.
“We intend to ensure that we live within our fiscal framework so that we don’t expand our debt to levels that are not manageable.”
Although Kenya has faced strong challenges this year from rampant inflation and a steep fall in its shilling currency against the dollar, foreign investors and institutions like the IMF have in the past praised its macro-economic management.
Kinyua said should the need arise, the government will fund the campaign known as Operation ‘Linda Nchi’, Swahili for ‘Protect the Nation’ by cutting unnecessary government expenditure like foreign trips by officials.
“We have a lot of our people travelling overseas to attend meetings which may not be of immediate value to the country and even if we were to completely block them, we know the nation will not suffer at all,” he said.
“Even if we were to increase expenditure, it will be in a very minimal way. We intend to live prudently even with that operation.”