Kenya’s public debt stood at KSh 7.7 Trillion by the end of June 2021. This comprised KSh 3.7 Trillion domestic debt (47.9%) and KSh 4. Trillion external debt (52.1%).
Figures from CBK weekly bulletin and National Treasury shows that public debt stood at KSh 5.8 Trillion in June 2019, KSh 6.7 Trillion in June 2020, KSh 7.1 Trillion in September 2020, KSh 7.3 Trillion in December 2020, KSh 7.3 Trillion in March 2021, KSh 7.5 Trillion and KSh 7.5 Trillion in May 2021.
Public Debt Holders
Commercial Banks are the leading holders of the Government’s domestic debt as of 9th July 2021, at 50.74%, followed by pension funds(31.11%), insurance firms(6.75%), other investors( 5.94%) and Parastatals(5.45%).
The CBK bulletin also shows that the Kenya Shilling depreciated against major international and regional currencies during the week ending July 15. It exchanged at KSh 108.03 per US$ on July 15, compared to KSh 107.95 per US$ on July 8.
The Kenya Shilling indicative mean rate against the Sterling pound also weakened to KSh 149.83 on July 15th compared to KSh 149.53 on July 14th.
However, the local unit strengthened against the Euro to KSh 127.68 on July 15th compared to KSh 127.87 on July 14th 2021.
The Kenya Shilling weakened against 100 Japanese Yen to KSh 98.12 on 15th July compared to KSh 97.92 on July 14th, 2021 but gained against the Uganda Shilling, Tanzania Shilling, Rwandese Franc and Burundi Franc, between July 14th and 15th, 2021.
World financial markets remained cautious during the week ending July 15 due to stronger than expected inflation data in major economies.
Fears that higher than expected inflation would force central banks into pre-emptive interest rate hikes dominated the markets.
International oil prices increased marginally during the week due to inventory drawdown in the US. Murban oil price rose to US$71.75 per barrel on July 15 from $69.98 per barrel on July 8th, 2021.
Foreign Exchange Reserves remained adequate at US$ 9,621 million (5.87 months of import cover) as of July 15.