This archive report was first published on 16 August 2021.
Kenya's external debt has skyrocketed to a record high, with the country's total public debt reaching KSh7.7 trillion at the end of June 2021, a 15% increase from the previous year.
According to data released by the Central Bank of Kenya, the country's external debt stood at $37.23 billion at the end of June this year, up from $33.01 billion at the end of June 2020.
The country's reliance on external debt has increased, with external debt making up 52% of Kenya's total public debt at the end of the first six months of this year.
Kenya received a $307.5 million loan from the IMF in April this year as part of the Extended Credit Facility (ECF), and also received $1 billion from the issuance of a fourth Eurobond in June. Additionally, the World Bank extended a $750 million loan in June to support the country's covid-19 recovery efforts.
Domestically, Kenya's debt has also increased, with the country's domestic debt rising to KSh3.79 trillion at the end of July, a 9% increase from the start of the year.
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%.
