Nairobi, Sept. 22 -- The National Assembly is yet to approve the creation of a special fund to "ring-fence" cash for repayment of maturing debt, dealing a setback to plans to ease future cash flow pressures on the government.
The Treasury said on Monday the approval of the Public Finance Management (Sinking Fund) Guidelines, which Cabinet Secretary Ukur Yatani gazetted in May, is still pending before Parliament, holding up the creation of a kitty from which maturing loans will be paid.
The Public Finance Management (PFM) Act 2012 requires the Treasury to get the green light from lawmakers to set up the "Sinking Fund".
The cash in the Fund will be spent on paying off maturing loans, buying back bonds when interest is low, and retire some ...