Taxpayers could have forked out Sh76 billion more as interest accrued on delayed servicing of foreign loans in the 2018-19 financial year, a report shows. According to the Auditor General's report on the national government accounts, this was captured as payment for foreign loans. It was after an analysis of individual loans that the auditor established that the Sh76 billion was an over-payment for interests accrued on foreign loans. This means that the country incurred a net loss of Sh126 billion in settling delayed interest on Treasury bonds and foreign loans. It reveals how the government could be paying dearly for delays in meeting its domestic and foreign financial obligations, further ballooning the public debt.

Source: The Star May 13, 2021 02:03 UTC