[PHOTO/kbc.co.ke]
Kenya’s debt is growing towards the red zone and is expected to hit 60 percent of the country’s wealth by June next year.
According to rating agency Moody’s, the country's fiscal space will come under renewed pressure as Kenya begins paying off interest on the Eurobond and the syndicated loans that were borrowed five years ago.
Her debt stood at Sh4 trillion or 56% of GDP as of June this year but has been rising and increasing at an average annual rate of 20 percent.
Kenya has been on a borrowing spree to fund multi-billion dollar infrastructural projects that include the SGR , expansion of the Port of Mombasa, new energy plants as well as the upgrade of various highways.
Although various bodies have raised concerns over the expanding debt, the National Treasury has set the threshold of 70.4 percent which it does not plan to breach.