Kenya’s overall debt position as of 31st December 2023 increased by KSh 1,930.9 billion to amount to KSh 11,139.7 billion compared to KSh 9,208.8 billion as of the end of December 2022.
- The public debt load comprises of 54.7% external debt and 45.3% domestic debt.
- Treasury attributes this increase in the country’s debt to external loan disbursements; exchange rate fluctuations; and uptake of domestic debt during the period.
- The data shows that the stock of gross domestic debt increased by KSh 514.5 billion from KSh 4,535.6 billion in December 2022 to KSh. 5,050.1 billion in December 2023.
Kenya’s debt to China, at the end of 2023, was the highest and stood at US$ 6,000.71 Million. It is followed by Japan US$ 1,269.92 Million, France’s US$ 753.72 Million, Germany’s US$ 349.60 Million, Italy US$212.13 Million, Belgium US$ 179.21 Million, Austria US$ 13.63 Million, USA US$7.43 Million and others US$ 290.73 Million.
Kenya’s external debt service between July and December 2023 was highest for China at KSh 72,070.89 Million, followed by France USS$ 13,122.49 Million, Italy US$ 7,785.38 Million, Japan US$ 3,726.95 Million and Spain US$ 1,115.12 Million among other bilateral as well as multilateral donors, including the World Bank and IMF
These figures are contained in the Quarterly Economic and Budgetary Review, covering the First Half, Financial Year 2023/2024, published by Kenya’s National Treasury and Planning Ministry.
- The net domestic debt was KSh 4,585.8 billion by the end of the period under review.
- In dollar terms, external public debt stock increased by US$. 1,042.6 million from US$ 37,878.01 million in December, 2022 to US$ 38,920.6 million by the end of December, 2023.
- This comprised debt owed to multilateral lenders (50.3%), commercial banks (26.1 %), bilateral sources (23.4%) and Suppliers Credit (0.3%).
The increase is attributed to an increase in external loan disbursements and exchange rate fluctuations during the period. The exchange rate as of the end of December 2023 was KSh 156.5 per dollar. Compared to the same period in FY 2022/23, external public debt stock from multilateral institutions, commercial banks, and suppliers’ credit recorded an increase of KSh1,621.1 billion, KSh 105.4 billion, and KSh 8.8 billion respectively in the period ending December 2023.
Stock from bilateral sources recorded a decrease of KSh 692.7 billion in the period under review. By the end of December 2023, the total cumulative debt service payments to external creditors amounted to KSh 239.6 billion. This comprised of KSh. 134.6 billion (56.2 percent) principal and KSh. 105.0 billion (43.8 percent) interest.
By the end of December 2023, the total cumulative debt service payments to external creditors comprised of 43.7 percent, 35.6 percent, and 20.7 percent of the total payments to bilateral, commercial, and multilateral creditors respectively.
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