Kenya’s external debt rose to the highest level in the first half of this year as government spending shot up and revenue fell. The amount of external debt climbed to $37.23 billion at the end of June this year, compared to $33.01 billion at the end of June 2020.
The country’s total public debt rose by 15% to KSh7.7 trillion at the end of June 2021 from KSh6.7 trillion a year ago, according to data released by the Central Bank of Kenya. External debt made up 52% of Kenya’s total public debt at the end of the first six months of this year.
In April this year, Kenya received a $307.5 million loan for budgetary support from the IMF as part of the Extended Credit Facility (ECF). The country also received $1 billion from the issuance of a fourth Eurobond in June. In addition, the World Bank extended a $750 million loan in June to support the country’s covid-19 recovery efforts.
Kenya’s domestic debt increased to KSh3.79 trillion at the end of July, up 9% from KSh3.49 trillion at the start of the year. As of 30th July, local banks held the largest share of the domestic debt at 51%, followed by pension funds at 30.9%, insurance companies at 6.65%, other investors at 5.92%, and lastly state corporations at 5.39%.
Also read: World Bank Raises a Red Flag over Kenya’s Bulging Public Debt
