Kenya Public Debt 2020: There is no quenching the Jubilee government’s thirst for loans. In the financial year ended June 30 2021, President Uhuru Kenyatta’s government borrowed an astonishing Sh. 1.021 trillion.
Financial analysis from the Central Bank of Kenya shows that Kenya’s public and publicly guaranteed debt stood at Sh. 7.713 trillion by the end of June 2021. This comprised Sh. 3.698 trillion domestic debt, equivalent to 47.9 per cent and Sh. 4.015 trillion external debt, equivalent to 52.1 per cent.
Despite this huge borrowing, the government is still going to domestic markets to borrow more. During the July 14 Treasury Bond auction, the re-opened fifteen and twenty-five-year fixed rate bonds that were first issued in 2012, 2018 and 2021, received bids totaling Sh. 116.9 billion against an advertised amount of Sh. 60.0 billion, representing a performance of 194.9 per cent.
“This is not all. The government of Kenya does not use accrual accounting so the balance sheet is badly understated,” Kariuki Muiri commented on the revelation of Kenya’s latest borrowing spree.