Central Bank of Kenya released the latest Kenya’s debt data which indicated that the country borrowed an average of KSh 2.1 billion daily between January and February 2019.
According to Apex Bank, this amounted to KSh 126. 4 billion in the said period pushing the country overall debt to stand at KSh 5.4 trillion.
The report released on Tuesday, April 2, indicated the government borrowed heavily from domestic lenders particularly banks thus increasing local debt by KSh 142.6 billion to hit a total of KSh 2.692 trillion.
External debt also upped by KSh 22 billion recording KSh 2.707 trillion for the same period.
The government’s domestic borrowing is projected to persist given that Kenya Revenue Authority had issued a report indicating lower-than-targeted revenue performance in 2018/2019 financial year.
According to the taxman, the country was facing a deficit of KSh 635 billion which was expected to be covered through domestic borrowing to a tune of KSh 310 billion and external creditors loan of KSh 321.5 billion.
By the end of February, the government had already borrowed KSh 204 billion of the domestic target meaning only KSh 105 billion of the KSh 310 billion was remaining.
This increased local borrowing, according to financial analysts, has had
The country has surpassed the threshold of national debt to Gross Domestic Product (GDP) which has gone passed 50% maximum borrowing mark raising concerns over the ability to repay the loans.