...County Governments are required to prepare a strategy for managing their debt this is recognized by the Public Finance Management Act (2012) section 123 and it regulations sections 176 to 195which require submission of a debt management strategy over the medium term to the County Assembly on or before 28thFebruary annually. This is in regard to its actual and potential liabilities in respect of loans and its plans of dealing with those liabilities. The following information is included in this strategy paper: The total stock of debt as at the date of the statement The sources of the loans made to the County GovernmentThe principal risks associated with those loans The assumptions underlying the debt management strategy An analysis of the sustainability of the amount of debt, both actual and potential.After the statement has been submitted to the County Assembly, the County Executive Committee member for Finance is required to publish and publicize the statement and also submit a copy to the Commission of Revenue Allocation and the Inter-Governmental Budget and Economic Council. Developing sound debt management strategies has been identified as an important factor in avoiding debt and financial crises, and the hardship that such crises bring to citizens.

Download