Kenya’s Domestic Debt Hits Ksh5 Trillion For The First Time In History – Report
The Central Bank of Kenya’s weekly bulletin, published on January 19, reveals that Kenya’s internal debt has reached a historic milestone, surpassing Ksh5 trillion for the first time.
Internal debt refers to the portion of the national debt that is owed to creditors within Kenya. According to the monetary policy regulator, effective management of this debt is crucial for maintaining long-term macroeconomic stability.
As per the information provided, Treasury Bills and Bonds make up 95% of Kenya’s overall domestic debt, which amounts to Ksh 4.8 trillion.
As of January 12, 2024, CBK observed that Treasury Bills totaled Ksh551 billion, and Treasury Bonds reached Ksh4.3 trillion.
The Central Bank’s overdrafts constituted 1.82% of the overall debt, amounting to Ksh91.87 billion.
As specified in the report, Ksh126.28 billion of the total amount of Ksh5 trillion was attributed to additional domestic debt.
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“Other domestic debt includes clearing items in transit, advances from commercial banks, and pre-1997 government overdraft,” CBK observed.
The on-lent funds from the International Monetary Fund (IMF) to the government amounted to Ksh101 billion, constituting 2.02 percent of the overall debt.
In the weekly bulletin, CBK stated that primary holders of the government’s domestic debt were predominantly banking institutions and pension funds.
Additional stakeholders comprised government-controlled corporations, insurance firms, and individuals with private investments.
45.92% of the Ksh5 trillion debt is managed by banking institutions, while pension funds handle 29.97% of it.
7.24 percent of the domestic debt is held by insurance companies, 5.48 percent by parastatals, and 11.38 percent by other investors.
Kenya’s Domestic Debt Hits Ksh5 Trillion For The First Time In History – Report
