Kenya’s debt has surged to Sh10.6 trillion, a notable increase attributed to the acquisition of both domestic and international loans, coupled with currency fluctuations.
Data released by the National Treasury indicates that the country’s debt portfolio escalated from Sh1.8 trillion to Sh10.6 trillion by the close of September 30, 2023, marking a substantial rise from Sh8.76 trillion recorded at the same time the previous year.
According to the Treasury Q1 Quarterly Economic and Budgetary Review for the period concluding on September 30, 2023, the gross public debt composition consists of 53.5 percent external debt and 46.5 percent domestic debt.
The elevation in public debt is ascribed to external loan disbursements, fluctuations in exchange rates, and an increase in domestic debt uptake during the specified period. The net public debt stood at KSh. 10,173 billion at the end of the review period.
The report further delineates that external public debt witnessed a rise of $1.97 billion, escalating from $36.6 billion to $38.3 billion during this timeframe. The debt distribution to various lenders is characterized by multilateral lenders holding 49.9 percent, commercial banks at 26.2 percent, bilateral sources at 23.7 percent, and suppliers at 0.3 percent.
The surge in external debt is primarily attributed to heightened disbursements of external loans and fluctuations in exchange rates throughout this period.
Concurrently, domestically acquired loans increased by Sh587.5 billion, surging from Sh4.43 trillion to Sh5.01 trillion. As of the end of September 2023, the cumulative debt service payments to external creditors amounted to KSh. 152.1 billion. This comprised KSh. 89.4 billion (58.8 percent) in principal and KSh. 62.7 billion (41.2 percent) in interest payments.
