The total external debt stock including the international sovereign bond stood at Sh2.1 trillion at the period ending March 2017.
The debt stock comprised multilateral debt at 38.4 per cent, bilateral debt at 32.8 per cent, commercial banks debt at 28.3 per cent including international sovereign bond and suppliers’ credit debt at 0.5 per cent.
Corresponding to the rising debt load, foreign interest payments rose to Sh38.2 billion in the period compared to Sh26 billion in the same period of the 2015/16 financial year. On the other hand interest payments on domestic debt totaled Sh145.8 billion, which was higher than the Sh122.6 billion paid in the corresponding period of the previous financial year.
According to the budgetary review, Kenya’s loan repayment to China stood at Sh18 billion over the period representing over half of the total bilateral loans (Sh32.8 billion) highlighting the country’s growing appetite for Chinese loans.
Kenya this week committed to borrowing additional billions of shillings to finance the ongoing construction of the standard gauge railway (SGR) line indicating that the borrowings could soon take the debt load past 60 per cent of GDP level.
On Monday the government announced it is seeking an additional Sh370 billion ($3.59 billion) Chinese loan to extend the SGR from Naivasha to Kisumu, pushing the construction cost to Sh847 billion.
The country has in the past four years borrowed billions of shillings to finance power generation and road construction projects.
In addition to Sh327 billion spent on the first phase between Mombasa and Nairobi and Sh150 billion that the emerging Asian economy extended recently for the Nairobi-Naivasha section, the Chinese will have pumped a total of Sh847 billion in the venture.
This excludes interest on the loans that would push the overall cost beyond Sh1 trillion.