Uhuruto’s appetite for loans sees every Kenyan now owing $2,400 which they need to settle before 2035

President Uhuru Kenyatta and Deputy President William Ruto
  • Kenya's public debt currently stands at Sh5.27 trillion.
  • Kenya’s weight average interest rate is 7.7 per cent with average interest for external debt at 4.4 per cent while that of domestic loans is at 11.6 per cent.
  • 50.9 per cent of Kenya’s total debt is in foreign currency. The World Bank and China are Kenya’s top lenders.

Every Kenyan now owes an average of Sh240,000 to the country’s lenders and have to settle their ‘bill’ by November 2035.

This is because the country’s public debt currently stands at Sh5.27 trillion.

According to the 2019 Medium Term Debt Management Strategy (MTDS) tabled in parliament on Thursday last week, the principal public debt currently stands at Sh5.27 trillion with an average maturity of 16.9 years, a year lower than an average maturity of 17.5 years in 2017.

The report further indicated that Kenya’s weight average interest rate is 7.7 per cent with average interest for external debt at 4.4 per cent while that of domestic loans is at 11.6 per cent.

This, therefore, means that if Kenya was to retire its total debt today, it will have to incur an annual interest of Sh400 billion, this without factoring in foreign currency volatility.

With the debt maturity standing at an average of 16.9 years, it means the country will have to pay a total of Sh6.76 trillion in interest in addition to the principal debt of Sh5.2 trillion, bringing its compound debt to Sh11.9 trillion.

The amount is way above Kenya’s Gross Domestic Product (GDP) estimated at Sh8.2 trillion, meaning the country’s net worth is in the negative.

Treasury report shows that 50.9 per cent of Kenya’s total debt is in foreign currency.

The World Bank and China are Kenya’s top lenders. As at the end of June 2018, the World Bank’s total lending to Kenya stood at Sh581 billion ($5.8 billion), slightly ahead of China’s Sh557 billion ($5.5 billion).

The hefty loans owed to China and the World Bank continue to give the two foreign lenders significant influence on the country’s economic policy planning.

World Development Indicator (WDI) estimates Kenya’s population at between 49.7 million and 51.7 million, averaging slightly above 50 million.

This means that each Kenyan owes lenders an average Sh240,000 to be settled on or before November 2035.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Why do guys still masturbate when they have girlfriends?

Why do guys still masturbate when they have girlfriends?

Police uniform, weapon are ID - Mutyambai addresses Boniface Mwangi's trending clips

Police uniform, weapon are ID - Mutyambai addresses Boniface Mwangi's trending clips

From Millionaire to Hawker - How Muthee is rebuilding his life from scratch

From Millionaire to Hawker - How Muthee is rebuilding his life from scratch

If I rise, let me rise with other people - Crazy Kennar scoops 3 titles at the Pulse Influencer Awards

If I rise, let me rise with other people - Crazy Kennar scoops 3 titles at the Pulse Influencer Awards

Zuckerberg loses $6 billion hours after Facebook, WhatsApp, Instagram crashed

Zuckerberg loses $6 billion hours after Facebook, WhatsApp, Instagram crashed

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

Cooking for Drake, collaboration with Wizkid and other things Tems revealed in a Twitter Q&A

I’m a father of Two - Willis Raburu’s humble request over his late daughter Adana

I’m a father of Two - Willis Raburu’s humble request over his late daughter Adana

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

I spent Sh800K - Vera speaks on begging for money to fund lavish Baby shower

#PulseUhondoMtaani: TV presenter's former househelp spills beans on toxic boss, Ezekiel Mutua removed from KFCB & other stories

#PulseUhondoMtaani: TV presenter's former househelp spills beans on toxic boss, Ezekiel Mutua removed from KFCB & other stories