This archive report was first published on 28 October 2019.
Published on October 28, 2019, Kenya's total public debt has reached a staggering KSh 6 trillion, marking a 14% increase from KSh 5.3 trillion at the beginning of the year.
External debt, which stood at KSh 3.16 trillion at the end of August, accounts for a significant portion of the country's borrowing. This is despite the government's efforts to fund significant development projects, such as the Mombasa-Nairobi expressway.
Over the past year, external public debt grew by 20% from KSh 2.6 trillion to KSh 3.13 trillion, while domestic debt grew to KSh 2.8 trillion, a 13% increase from KSh 2.5 trillion in September last year.
Experts warn that the country's borrowing habits are unsustainable, with the debt representing 60% of the country's GDP. Recent regulations that point to repealing the interest rate could increase the cost of domestic debt, making it even less likely for Kenya to become a KSh 10 trillion economy as predicted by the IMF.
