National Treasury Cabinet Secretary Njuguna Ndung'u is set to appear before the National Assembly's Public Debt and Privatisation Committee to brief members on the status of Kenya's outstanding loans.
The CS will take the committee through a detailed review of outstanding loans by creditor, currency and drawdown.
He will also brief members of the committee on the status of projects undertaken by the loans and commitment fees.
Ndung'u will also take the committee through loans accruing to Export Credit Agencies, purchases, contingency liability exposure and the law governing East African Community agreements.
"The committee will also be appraised on the risks associated with this portfolio," a press invite indicated.
An export credit agency offers trade finance and other services to facilitate domestic companies' international exports.
Most countries have ECAs that provide loans, loan guarantees and insurance to help eliminate the uncertainty of exporting to other countries.
Financial arrangements for imports and/or exports are normally more complex than those for domestic trade.
Most of the payments are upfront and therefore traders need to determine the funds traders require and make adequate arrangements for sourcing these funds.
Traders will make payments and/or receive proceeds in foreign currency.
Meanwhile, Kenya's debt level has reached record highs.
National Treasury figures in August showed total public debt rose by a record Sh1.56 trillion in the financial year ended June 30, 2023, to Sh10.1 trillion.
Loan repayment costs, mainly to China, have shot up as the local currency trades at record lows of around Sh145 to the US dollar.
The cost of debt servicing in the year ended June was Sh391 billion, of which the highest payment, Sh107 billion, went to China.
In June, MPs voted to change the debt ceiling from a fixed shilling amount to a proportion of the country's gross domestic product (GDP).
The Senate is yet to pass the amendment. Inflation has remained high, at an annual rate of 7.3 per cent last month.
President William Ruto has promised to slash government debt and introduce policies putting money in the pockets of Kenyans.
He has insisted the tax hikes are needed to create jobs, fill government coffers and ease over-reliance on borrowing.
