NAIROBI: “The gross public debt increased from 25.5 billion dollars as of end of June 2014 to 28.2 billion, an equivalent of 46.8 percent of the Gross Domestic Product (GDP), by March 31,” said the Treasury in the report titled Quarterly Economic and Budgetary Review.
Of the public debt, 47.8 percent is external while 52.2 percent is domestic. Treasury noted that there was increased borrowing from external lenders and the domestic market through Treasury bills and bonds.
In dollar terms, according to Treasury, external public debt stock during the period increased from 12.9 billion dollars to 13. 8 billion dollars.
“The debt stock comprised 30.1 percent, 48.4 percent, 20.3 percent and 1.2 percent of debt owed to bilateral, multilateral institutions, commercial banks and suppliers’ credit respectively. The increase is attributed to more disbursements especially from China and African Development Bank during the period under review, ” said the Treasury.
China has beaten Japan and western nations to become Kenya’s top lender. In March for instance, the Asian nation lend to Kenya 2.2 billion dollars, with Japan coming second at 803 million dollars and France 589 million dollars, showed the report.
Domestic debt, however, did not accelerate as faster as external debt. During the period, the stock of domestic debt increased from 13.5 billion dollars to 14.7 billion dollars in March.
Kenya’s Treasury, International Monetary Fund and African Development Bank have said, however, the public debt is sustainable. Enditem
