Kenya’s Domestic Debt Hits Ksh5 Trillion

Kenya’s Domestic Debt Hits Ksh5 Trillion

Kenya’s Domestic Debt Hits Ksh5 Trillion

For the first time ever, Kenya’s national debt has reached Ksh5 trillion, according to the Central Bank of Kenya’s (CBK) weekly bulletin, which was published on January 19. A portion of the state debt owed to Kenyan creditors is classified as domestic debt. The monetary policy regulator underlined that maintaining macroeconomic stability depends on its administration.

The data shows that 95% of Kenya’s Ksh 4.8 trillion in total domestic debt was made up of Treasury Bills and Bonds. As of January 12, 2024, Ksh4.3 trillion was the value of Treasury Bonds, according to CBK, while Ksh551 billion was the value of Treasury Bills.

Overdrafts at the Central Bank accounted for 1.82 per cent of the total debt which translated to Ksh91.87 billion. As outlined in the document, other domestic debt accounted for Ksh126.28 billion of the Ksh5 trillion sum.

Overdrafts at the Central Bank accounted for 1.82 per cent of the total debt which translated to Ksh91.87 billion. As outlined in the document, other domestic debt accounted for Ksh126.28 billion of the Ksh5 trillion sum. 

“Pre-1997 government overdraft, advances from commercial banks, and clearing items in transit are examples of other domestic debt,” according to CBK. The amount of money the International Monetary Fund (IMF) loaned to the government was Ksh101 billion, or 2.02% of the total debt. In the weekly bulletin, CBK declared that pension funds and banking institutions held the majority of the country’s domestic government debt.Private investors, insurance companies, and parastatals were among the other holders.

Pension funds have 29.97 percent of the Ksh5 trillion in debt, while banking institutions control 45.92 percent. The percentages of insurance firms, parastatals, and other investors that make up the domestic debt are 7.24%, 5.48%, and 11.38%, respectively.