Kenya's External Debt Climbs to $37 Billion in First Six Months of 2021

Kenya’s external debt rose to the highest level in the first half of this year as government spending shot up and revenue fell. The amount of external debt climbed to $37.23 billion at the end of June this year, compared to $33.01 billion at the end of June 2020.

The country’s total public debt rose by 15% to KSh7.7 trillion at the end of June 2021 from KSh6.7 trillion a year ago, according to data released by the Central Bank of Kenya. External debt made up 52% of Kenya’s total public debt at the end of the first six months of this year.

In April this year, Kenya received a $307.5 million loan for budgetary support from the IMF as part of the Extended Credit Facility (ECF). The country also received $1 billion from the issuance of a fourth Eurobond in June. In addition, the World Bank extended a $750 million loan in June to support the country’s covid-19 recovery efforts.

Kenya’s domestic debt increased to KSh3.79 trillion at the end of July, up 9% from KSh3.49 trillion at the start of the year. As of 30th July, local banks held the largest share of the domestic debt at 51%, followed by pension funds at 30.9%, insurance companies at 6.65%, other investors at 5.92%, and lastly state corporations at 5.39%.

Also read: World Bank Raises a Red Flag over Kenya’s Bulging Public Debt