One of the pressing issues in Kenya's public discourse is the matter of public debt. The extent of Kenya's indebtedness and the utilization of borrowed funds are significant concerns.  

Effective public debt management supports a stable and favorable economic environment, which is essential for promoting international trade. Achieving overall economic stability through sound debt management creates a conducive atmosphere for trade, making stable economies more attractive to trade partners and investors, thereby fostering robust trade relationships. 

The questions that have arisen about how the country, despite having a public debt management office, struggles to accurately account for its debts should also concern anyone interested in trading with or investing in Kenya. 

At the helm of the public management debt office, is a Directorate directly accountable to the Cabinet Secretary. The Directorate's mission is to do the following: 

• Cost Efficiency: Skillfully minimize the long-term expenses of managing and borrowing public debt, always mindful of risk. 
  
  
• Market Development: Foster robust market institutions for government debt securities. 
  
  
• Generational Fairness: Ensure a fair distribution of public debt benefits and costs between current and future generations. 

The Directorate's operations are seamlessly divided among the following three specialized departments, each guided by a dedicated Director: 

• Resource Mobilization; 
  
  
• Debt Policy, Strategy, and Risk Management; and  
  
  
• Debt Recording and Settlement. 

Despite the existence of this Directorate, why do we still lack accurate records of the country’s indebtedness? Is there an issue with the culture underlying our perception of debt in these offices? Do we understand the fundamental tenets that underpin public debt management? 

A good starting point is to examine the fundamental principles that guide effective and sustainable public debt management: 

• Sustainability: Ensuring that public debt levels remain manageable and do not jeopardize the country's financial stability or economic growth. 
  
  
• Cost Minimization: Borrowing funds at the lowest possible cost over the medium to long term, while considering risk. 
  
  
• Risk Management: Identifying, assessing, and mitigating risks associated with debt, including interest rate, currency, and refinancing risks. 
  
  
• Market Development: Promoting the development of efficient and liquid domestic debt markets to enhance borrowing options and reduce reliance on external funding. 
  
  
• Transparency: Maintaining clear, accurate, and timely reporting on debt operations and policies to build credibility and trust with stakeholders, including investors and the public. 
  
  
• Legal and Institutional Framework: Establishing a robust legal and regulatory framework that supports effective debt management operations. 
  
  
• Coordination: Ensuring effective coordination between debt management policies and broader macroeconomic policies, particularly fiscal and monetary policies. 
  
  
• Strategic Planning: Developing and implementing a comprehensive debt management strategy that aligns with the country’s fiscal and economic objectives. 
  
  
• Equitable Distribution: Ensuring that the costs and benefits of public debt are shared fairly across different generations and social groups. 
  
  
• Capacity Building: Investing in the skills and systems necessary for effective debt management, including training for staff and the development of analytical tools and technologies. 

Our debt management problem reveals a failure to adhere to the myriad robust legal frameworks and regulations that govern public debt management and ensure compliance with international standards. An understanding of these tenets and the will to implement them lead to more efficient debt management, contributing to economic stability and sustainable growth. It is time we utilize modern technology and information systems to enhance debt management operations, data collection, and analysis.