In Summary
  • As at June this year, the national debt stood at Sh5.1 trillion of which Sh2.5 trillion is domestic and Sh2.6 trillion external.

  • But Mr Rotich said despite public outrage over the government's borrowing appetite, the GDP expanded by 4.9 per cent in 2017 compared to 5.9 per cent in 2016.

Kenya's public debt is expected to hit Sh5.6 trillion by next June and about Sh7 trillion in 2022 when President Uhuru Kenyatta will complete his second and final term.

This is according to this year’s annual public debt management report by Treasury Cabinet Secretary Henry Rotich tabled in the National Assembly yesterday.

It shows that as at June this year, the national debt stood at Sh5.1 trillion of which Sh2.5 trillion is domestic and Sh2.6 trillion external.

Among the leading external lenders who have contributed to the debt burden include China with Sh559.1 billion, Italy Sh101.9 billion, Germany Sh34.7 billion, Belgium Sh10.2 billion and US Sh2.9 billion.

PUBLIC OUTRAGE

Others are the International Development Association (IDA) Sh516.8 billion, Africa Development Bank (ADB) Sh204.8 billion and International Monetary Fund (IMF) Sh71.6 billion.

But Mr Rotich said despite public outrage over the government's borrowing appetite, the country’s Gross Domestic Product (GDP) expanded by 4.9 per cent in 2017 compared to 5.9 per cent in 2016.

“The economy remained resilient despite multiple shocks arising from the prolonged drought, electioneering period and global economic slowdown,” Mr Rotich said adding; “growth was mainly attributed to improved weather conditions, stable business environment and consumer confidence.”

MANUFACTURING

The increase in the public debt has put pressure on the economy with key infrastructure projects such as roads, electricity, water and other basic provisions at risk of suffering budget cuts.

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