I think domestic interest rates will remain fairly unchanged until next month and until the next few months to the end of the year, the 91D Tbill rates won't move much coz of the KBRR. Treasury are counting on the single treasury account to help smoothen out the domestic borrowing programme (thus reduce inefficiencies) and hopefully give them scope to lower the borrowing requirements this year.

The article has some good points but assumes that everything is a standstill and debt is the only thing expanding exponentially. The debt is financing infrastructure and could potentially accelerate revenues but the financing costs he's referring to are rather small (can be serviced). But the point about rolling over the debt in give years is key but provided Treasury doesn't get overzealous on fcy borrowing I think we can roll them over comfortably.

Not really the case. The expensive T-Bills have been issued and many go out for 12 months at 22%.
The cheaper T-Bills are thanks to QE by CBK as a response to the collapse of Imperial Bank & the panic withdrawals from (good) Tier 2 & 3 banks. CBK is entering into Reverse Repos with many banks at the CBR rate to inject liquidity. This was a good move by PNN otherwise more banks could have had liquidity issues.

http://www.businessdaily...6/-/5r3ttd/-/index.html

Ultimately, the answer lies in FISCAL DISCIPLINE. The new short-term (2-yr) USD 600mn facility will come back to bite us before we know it. And then the 5-yr T-Bond (issued in 2014) soon thereafter. I do not even know what the terms of the Chinese loans are.

As @hisah says... elections do not make for fiscal discipline especially when the incumbent is running for re-election . The pain comes after the election.

Current account savings are major; energy self sufficiency, local food produce, lower global fuel prices.

That Punguza Mzigo proposal is very grand. When adopted it will take care of waste & create money to repay & finance capital expenditure.