By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Newsunplug KenyaNewsunplug KenyaNewsunplug Kenya
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Reading: Kenya’s Public Debt Surges Past $76bn On Weak Shilling
Share
Notification Show More
Font ResizerAa
Newsunplug KenyaNewsunplug Kenya
Font ResizerAa
  • News
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Newsunplug Kenya > Blog > Business > Kenya’s Public Debt Surges Past $76bn On Weak Shilling
BusinessNews

Kenya’s Public Debt Surges Past $76bn On Weak Shilling

hallanaija
Last updated: February 20, 2024 8:05 am
hallanaija 1 year ago
Share
SHARE

Kenya’s public debt shot up by Ksh1.93 trillion ($13.3 billion) in the year ended December 2023, raising the country’s indebtedness to a new high of Ksh11.14 trillion ($76.83 billion).

This translated to a daily increase of Ksh5.29 billion ($36.5 million) for the entire 2023, the year when the Kenyan shilling shed 26.8 percent of its value against the US dollar.

The shilling’s depreciation had a heavy impact on external public debts, accounting for 73 percent (Ksh1.4 trillion) of the Ksh1.9 trillion increase during the year.

“The gross public debt as at December 31, 2023, increased by Ksh1.93 trillion to Ksh11.1397 trillion compared to Ksh9.2 trillion ($63.45 billion) as at the end of December 2022. The gross public debt comprised 54.7 percent external debt and 45.3 percent domestic debt,” Treasury reported in the October-December 2023 quarterly economic and budget review report.

“The increase in the public debt is attributed to external loan disbursements; exchange rate fluctuations; and uptake of domestic debt during the period.”

From January to the end of December 2023, total external public debt increased by Ksh1.416 trillion, hitting Ksh6 trillion.

READ MORE  “I want to promise you that it is going to stop, enough is enough’ - President, Ruto William warns citizens protests must stop

On the other hand, total domestic debt increased by Ksh514.48 billion, to hit Ksh5 trillion.

External debts dominated the increase in the total public debt stock to account for 73 percent of the increase as the Kenyan Shilling depreciated heavily against the US Dollar, since the foreign currency accounts for more than two thirds of external debts.

Between the end of December 2022 and December 2023, the shilling lost 26.8 percent value, from trading at 123.37 units against the dollar to trading at 156.46 units. This meant that a Kenyan (or the government) purchasing dollars for debt service or importation of goods spent Ksh33 more to access $1 by end of December 2023, than they required a year earlier.

“In dollar terms, external public debt stock increased by $1.04 billion from $37.878 billion in December 2022 to $38.92 billion by the end of December 2023. The increase is attributed to increase in external loans disbursements and exchange rate fluctuations during the period,” Treasury reported.

Multilateral loans — accessed from organisations such as the World Bank and the International Monetary Fund (IMF) — had the highest increase of $1.62 billion. Bilateral loans (from other countries), however, dropped by $692.72 million to $9.089 billion in the year to December.

READ MORE  Kilimani MCA Moses Ogeto blasts media for ‘exposing’ Sakaja

“Compared to the same period in FY 2022/23, external public debt stock from multilateral institutions, commercial banks and from suppliers’ credit recorded an increase of Ksh1.62 trillion, Ksh105.4 billion and Ksh8.8 billion respectively in the period ending December 2023. Stock from bilateral sources recorded a decrease of Ksh692.7 billion in the period under review,” Treasury reported.

The stock of gross domestic debt increased from Ksh4.53 trillion in December 2022 to Ksh5,05 trillion in December 2023, led by increase in debt from non-banks by Ksh303 billion, commercial banks debts which increased by Ksh92.3 billion, and debt from the Central Bank of Kenya which raised by Ksh77.2 billion to Ksh224.47 billion.

“The stock of Treasury Bills held by CBK, Commercial Banks, Non-Banking Financial Institutions and Non-Residents declined by Ksh124.6 billion from Ksh671.5 billion in December 2022 to Ksh546.9 billion in December 2023,” Treasury stated.

“The total stock of Treasury Bonds, which include Floating, Fixed Rate, Special and Zero-Coupon Bonds, increased by Ksh196.8 billion from Ksh2.53 trillion in December 2022 to Ksh2.73 trillion in December 2023.”

READ MORE  State loses appeal against suspension of GMO imports

You Might Also Like

Police launch probe after passenger dies at JKIA waiting lounge

‘Blame Ruto if something happens to me,’ MP Jayne Kihara claims life in danger after security withdrawn

Kenha fines driver Sh13.9m for overloading truck

City Hall To Set Up First Wood Furniture Industry In Kenya

Safaricom names new finance boss in fresh management shuffle

Share This Article
Facebook Twitter Email Print
Previous Article Meeting Between Sakaja, Senate Committee Rescheduled
Next Article North Korea’s Kim Gifted Car By Russia’s Putin, State Media Says
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

about us

We influence 20 million users and is the number one business and technology news network on the planet.

Recent Posts

  • Paris Saint-Germain beats Real Madrid in the race to sign the precious gem!
  • Sakaja defends clampdown on property owners over unpaid land rates
  • Man Utd captain Fernandes rejects Al-Hilal move
  • GG Kariuki’s widow Gladys Wairimu dies at 80
  • Rose Njeri released on Ksh.100,000 bond

Recent Comments

No comments to show.
Newsunplug KenyaNewsunplug Kenya
© Newsunplug Kenya. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?