Kenya’s domestic debt has reached a historic high, surpassing Ksh5 trillion for the first time, as reported in the Central Bank of Kenya’s weekly bulletin released on January 19, 2024.
Domestic debt constitutes a portion of the public debt payable to creditors within Kenya, and its effective management is emphasized by the monetary policy regulator for maintaining sustained macroeconomic stability.
Treasury Bills and Bonds, as per the report, make up a significant 95 % of Kenya’s total domestic debt, standing at Ksh 4.8 trillion.
Breaking down the figures, Treasury Bills were recorded at Ksh551 billion, while Treasury Bonds accounted for Ksh4.3 trillion as of January 12, 2024.
Meanwhile, overdrafts at the Central Bank of Kenya contributed 1.82 % to the overall debt, totaling Ksh91.87 billion.
“Other domestic debt includes clearing items in transit, advances from commercial banks, and pre-1997 government overdraft,” the report reads.
Funds from the International Monetary Fund (IMF) on-lent to the government constituted Ksh101 billion, representing 2.02 % of the total debt.
The CBK further disclosed that banking institutions and pension funds were the primary holders of government domestic debt.
Banking institutions took the lead with 45.92 % control over the Ksh5 trillion debt, while pension funds accounted for 29.97 %. Other holders included parastatals, insurance companies, and private investors.
