Businesses & Financial News

Kenya’s debt hits Sh7.7 trillion

As of January 2021, the external debt from Kenya accumulated to more than 3.8 trillion Kenyan shillings (Ksh), approximately 35.6 billion U.S. dollars. The value was equivalent to 52 percent of the country's total debt.

The country’s debt hit Ksh.7.7 trillion in June this year according to new data from the National Treasury and the Central Bank of Kenya (CBK).

This means that the country has added at least Ksh.1 trillion to its debt stock over the last 12 months in a period which has seen an uptick of loan disbursements to Kenya.

Kenya’s external debt crossed the Ksh.4 trillion mark at the end of June while domestic debt hit Ksh.3.7 trillion.

The budget paper saw the debt stock at Ksh.7.66 trillion at the end of June this year to comprise of Ksh.3.9 trillion in external debt and Ksh.3.7 trillion in local debt.

The 2021 BPS expects the stock of public debt to rise to Ksh.8.6 trillion by June next year and to Ksh.9.4 trillion in the subsequent fiscal year.

In June of 2024, public debt is project to hit double digits at a flat Ksh.10 trillion before expanding further to Ksh.10.6 trillion by June 2025.

The stock of debt will be at this time well above the Ksh.9 trillion threshold set by Parliament.

It is for this reason that the exchequer is expected to appeal for a higher debt ceiling to at least Ksh.12 trillion.

This is despite the previous review coming in only at the end of 2019.

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