This archive report was first published on 4 September 2019.
As Kenya's public debt continues to soar, reaching 5.95 trillion shillings, Central Bank Governor Dr. Patrick Njoroge has sounded the alarm, warning of the risks associated with high debt costs and repayment risks.
Published on September 4, 2019, Dr. Njoroge emphasized the need for the government to explore alternative revenue streams to finance projects, rather than relying heavily on external borrowing, which now accounts for 60% of the country's Gross Domestic Product.
Kenya's total public debt comprises 3 trillion shillings from international lenders and 2.95 trillion shillings in domestic borrowing, raising concerns about the country's ability to service its loans.
Dr. Njoroge's comments come as the government is in the process of demonetizing old 1,000 shillings notes, a move aimed at combating illicit financial flows and corruption.
With only 26 days remaining to exchange old notes for new ones, Dr. Njoroge urged Kenyans to take advantage of the opportunity, warning that the deadline will not be extended.
