Kenya’s debts increase as treasury predicts new borrowing plan

Kenya is set to borrow at least Ksh.1.5 trillion in the new financial year commencing in July.

Reviewing the final budget estimates tabled in Parliament last week, the new borrowing plan matches up to estimated loan financing in the current financial year running to June 30- Ksh.1.4 trillion.

Out of its original Ksh.3.6 trillion spending plan, the government of Kenya is only expected to raise Ksh.2 trillion in revenues leaving a financing hole of Ksh.1.5 trillion.

A partly Ksh.62 billion of the deficit is expected to be funded by grants from development partners leaving behind a gap still in excess of Ksh.1.5 trillion. 

Net foreign financing is tabulated at Ksh.291.3 billion and comprises Ksh.124.3 billion Eurobond and Ksh.74.3 billion from the World Bank Development Policy Operations (DPO).

Kenya’s current stock of debt is expected to close at Ksh.7.7 trillion down from Ksh.6.7 trillion in the month of June.

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