Latest data by KNBS now shows that Kenya’s total outstanding external debt reached Sh4.21 trillion by March 2022 as a result of government borrowing to close the budget deficit.
Further according to the figures from KNBS, the total amount of public and publicly guaranteed external debt outstanding climbed by 11.7% from the same period in 2021 to Sh3.76 trillion.
At a 43.2 percent, multilateral debt made up the majority of the total amount of outstanding external debt after increasing by 21.5 percent since March 2021.
The stock of debt due to commercial banks, which was worth Sh1.2 trillion, was the second-largest source of credit, accounting for 28.7% of the overall stock of external debt.
The majority of the financial instruments owned by commercial banks, that amounted to a 67.6% of the total stock of commercial debt during the review period, were Eurobond.
By the end of March 2022, there was Sh1.17 trillion in bilateral debt, up from Sh1.14 trillion by the end of March 2021.
As a result, the total amount of debt increased and is now estimated by the Central Bank of Kenya to be Sh8.4 trillion. The national debt is $4.22 trillion.
The statistics by KNBS further indicates that suppliers’ credit to the government decreased to Sh12 billion in March from Sh18 billion during a same month in 2021.
The world bank is Kenya’s biggest lender followed by China, which in several occasions has been accused of putting the burden on Kenyans through debt.
According to data by the National Treasury, the World Bank has the largest proportion of Kenya’s loans, with a total value of Sh1.2 trillion, virtually equaling the total value of all commercial loans as of the end of March 2022.
Kenya is only Sh1.6 trillion less to achieve the 10 million debt ceiling that legislators agreed on last week. The legislators passed a motion that allowed the government to exceed the debt ceiling from its 9 trillion mark to the now 10 million mark