The 2019/20 Public Debt Management Report by the National Treasury tabled in Parliament earlier this month reveals elevated debt risks over the medium term along with a significant rise of debt servicing costs.
The higher debt stock will set against the recently revised public debt ceiling of Ksh.9 trillion by the National Assembly with the limit being surpassed long before June 2023 when the stock of debt is projected to stand at Ksh.9.4 trillion.
The National Treasury has nevertheless insisted of the sustainability of the country’s debt as it faults the combination of underlying weaknesses and the global COVID-19 crisis for the expected astronomical rise in the stock of debt.
Kenya has been on a borrowing spree since the start of the pandemic, immersing debt worth Ksh.1 trillion in eight months to August to lift the public debt stock from a flat Ksh.6 trillion at the end of 2019.
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