The Treasury’s quarterly economic and budget review of 2023 disclosed a substantial increase in Kenya’s public debt, soaring by KES 1.9 trillion to a total of KES 11.1 trillion, marking a record high. This surge equated to a daily increment of KES 5.3 billion throughout the year.
The principal factor driving this escalation was the depreciation of the shilling, depreciating by 26.8%, contributing KES 1.4 trillion to the overall debt surge, constituting 73% of the total increase. Consequently, external debt rose by 30.9%, reaching KES 6 trillion.
Analyzing the composition of external debt, multilateral loans surged by KES 1.62 trillion, commercial bank loans by KES 105.4 billion, and supplier credit by KES 8.8 billion. Conversely, bilateral loans decreased by KES 692.7 billion to KES 9.1 trillion.
Simultaneously, domestic debt increased by 11.5% to KES 5 trillion in 2023 from KES 4.5 trillion in 2022. This rise was attributed to elevated outstanding payments to non-bank institutions (KES 303 billion), commercial banks (KES 92.3 billion), and the Central Bank (KES 77.2 billion).
