Kenya Appoints Raphael Owino as New Head of Debt Management Office amid Economic Challenges

Kenya Appoints Raphael Owino as New Head of Debt Management Office Amid Economic Challenges

In a strategic move to address the country’s economic challenges, the Finance ministry of Kenya has appointed Raphael Owino, a Central Bank economist, as the new head of its debt management office. This decision comes as the previous head, Haron Sirima, stepped down from his position earlier this year.

The Finance ministry highlighted Owino’s expertise in public debt management, emphasizing his ability to maintain sustainable debt levels, reduce long-term servicing costs, and manage contingent liabilities. Owino’s experience at the Central Bank of Kenya has been deemed as a valuable asset for the country’s financial stability.

The appointment of Owino comes at a crucial time for Kenya, as the country recently faced scrutiny over fears of defaulting on a $2 billion international bond. To address this issue, the finance ministry issued a new $1.5 billion bond in February to buy back most of the previous bond, completing the payoff last month.

However, Kenya’s economic challenges have been further exacerbated by recent violent protests against a proposed tax hike bill. The bill, which included a 16% value-added tax on essential items such as bread and sugar, sparked widespread outrage and led to President William Ruto withdrawing the proposal.

Despite the protests, the International Monetary Fund (IMF) has urged Kenya to reduce its budget deficit from 5.7% to 3.3% of the GDP. The IMF’s insistence on these measures has raised concerns about the country’s ability to meet its financial obligations while addressing the needs of its citizens.

In response to the escalating protests, President Ruto refused to sign the bill and sent it back to parliament for further review. The protests, which resulted in 39 deaths and 361 injuries according to the Kenya National Commission on Human Rights, underscore the challenges facing the country as it navigates its economic recovery.

As Kenya continues to grapple with economic uncertainties, the appointment of Raphael Owino signals a commitment to addressing the country’s financial challenges with fresh perspectives and expertise. His leadership in the debt management office will be crucial in steering Kenya towards a path of sustainable economic growth and stability.