The National Treasury.[Photo/the-star.co.ke]
Kenya’s public borrowing has risen by at least Sh691 billion since the beginning of 2017 pushing the country's debt load to Sh4.5 trillion.
Latest data from Central Bank of Kenya (CBK) indicate that the outstanding stock of domestic debt stood at Sh2.208 trillion on December 15.
The external debt stock stood at Sh2.31 trillion at the end of September.
Experts have noted that the country needs to put in place serious fiscal consolidation measures to slow down the debt accumulation that has seen the debt to GDP ratio rise to 57 per cent from 54 per cent in June 2016 as per World Bank estimates.
“The expansionary fiscal stance and underperformance in revenue generation has led to a continued rise in the stock of debt,” said the Bretton Woods twin in its December 2017 Kenya economic update.
“The overall surge was attributed to increase in both external and domestic debt, as government borrowed to finance the fiscal deficit.”The World Bank, however, still rates the country at low risk of debt distress.