National Assembly Directs Treasury to Appoint New Director-General of Public Debt Management Unit Within 60 Days amid Secrecy

The National Assembly has issued a directive to the Treasury to appoint a new director-general of the public debt management unit within 60 days, sparking controversy over the secrecy surrounding the hiring process that began in January.

The position became technically vacant after the exit of Haron Sirima, who had been in charge since 2018. The public debt management office plays a crucial role in Kenya’s handling of public debt, including overseeing loan servicing, which has become a top risk for the country.

Despite the Public Service Commission (PSC) advertising the position in late January, details about the candidates who applied, the shortlisted candidates, and the interview dates have not been made public. The Parliamentary Committee on Public Debt and Privatisation has instructed the Treasury to fill the post by August 4.

The lack of transparency in the hiring process has raised concerns, with the PSC and Treasury being tight-lipped about the selection process. Treasury PS Chris Kiptoo revealed that interviews were conducted on June 18, with six candidates shortlisted and one selected for the position.

Dr. Sirima’s departure came at a critical time for Kenya, as the country faced liquidity challenges and uncertainty over its ability to access funding from financial markets before a $2 billion Eurobond matures in June. To address the situation, Kenya sold a new $1.5 billion Eurobond in mid-February, incurring significant costs to fund the buyback of a portion of the maturing bond.

With Kenya’s debt-to-GDP ratio exceeding 70 percent, concerns have been raised about the country’s ability to meet its debt obligations. The Public Debt and Privatisation Committee highlighted the need for increased economic effort and income capacity to address the growing public debt burden.

As Kenya grapples with its debt challenges, the appointment of a new director-general for the public debt management unit will be closely watched to ensure transparency and efficiency in managing the country’s debt obligations.