adminNAIROBI. — Kenya’s public debt has surged to 55 percent of the nation’s gross domestic product, according to a debt bulletin from National Treasury. The debt stood at 52 percent of the East African nation’s GDP at the end of June. The 3 percent swell, according to Treasury, follows rise in domestic and external loans. The east African nation’s public debt as at June stood at US$22 billion. And in June 2012, the public debt stood at US$19 billion, which was 49 percent of GDP.
“As at end of August, public and publicly guaranteed debt stood at US$24 billion or 54.7 percent of GDP,” says the debt bulletin received Saturday.
“The increase of 2.6 percent over the end of June position is mainly attributed to a rise in both domestic and external debt.”
External debt surged by US$145 million between June and August as compared to a rise of US$130 million between April to June period. Treasury attributes the increase in external debt to rise in disbursements and fluctuations of the local unit against world major currencies.
“The increase is due to rise in disbursements and depreciation of the Kenya Shilling against the major currencies. The currency composition of external debt is that Euro forms the largest share of the external debt portfolio at 34 percent followed by the dollar at 32 percent,” says Treasury. — Xinhua.
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