Public Debt Management Office made a presentation on Kenya’s Public Debt and borrowing.
Summary:
- As at the end of March 2020, Kenya’s Public Debt stock was Ksh. 6.3 trillion which is equivalent to 60% if GDP which is a growth from Ksh. 1.2 trillion in June 2010;
- Interest payments for financial year 2019/2020 is Ksh. 441.4 billion which is equivalent to 24% of ordinary revenues and interest payments for FY 2009/2010 was Ksh. 63.6 billion equivalent to 12% of ordinary revenues.
- Since 2010, multilateral debt has decreased by 50 percent from 66% in 2010 to 33% in 2020 and during that period, commercial loans have increased from 4% in 2010 to 34% in 2020 which is 750% growth;
- The National Treasury has a mandate of managing public debt in Kenya and this must be at sustainable levels;
- The National Public Debt Office is in the process of developing a Public Debt Borrowing Policy which has been discussed by key stakeholders such PBO, CBK, CoK, CMA, KIPPRA and Office of Auditor General;
- A draft of this policy was posted on National Treasury website for public participation in November 2019;
- The above policy received Cabinet approval in March 2020 and implementation is ongoing;
- Now what remains to be done is realignment of Public Debt Management Office to the new policy which will start in July 2020 to June 2021;
