Kenya’s debt is currently at $38.7b.
Kenya’s debt is currently at $38.7b.

Kenya Debt to Rise to 60% of GDP

Kenya Debt to Rise to 60% of GDP

Kenya’s rising debt is set to hit 60% of gross domestic product by June 2018 according to Global rating agency Moody’s Investors Service. In their latest report, the agency says Kenya’s debt to GDP has gone up to 56.4% from 40.5% in 2012.
Moody’s attributes the projected rise to high primary deficits and borrowing costs, AllAfrica reported.
Kenya’s debt is currently at Sh4 trillion ($38.7 billion), 13 percentage points above IMF’s recommended benchmark for emerging countries.
According to the treasury, nearly half of the external debt is concessional compared to the costly commercial loans, with the other half held in domestic debts through treasury bonds and bills.
A $750 million (Sh7.6 billion) syndicated loan borrowed in 2015 is due for repayment this year, while the $2 billion euro bond will mature in 2024, further exerting pressure on the government to set provisions for the payments.
The IMF, in its review of Kenya a year ago, said Kenya’s risk of external debt distress remains low but notes there is need for reduction in the deficit over the medium term.
The World Economic Forum ranks Kenya at number 77 out of 138 countries using the GDP/debt ratio score.
Japan is the most indebted country with a score of 248.1% of GDP, followed by Greece (178.4%), Lebanon (139.1%). The United States, ranked at 128, has a debt to GDP ratio of 105.8%, but with the highest total debt of $17.9 trillion.
Hong Kong, Brunei and Saudi Arabia are the least indebted countries at 0.1, 3.1 and 5.8% respectively. Algeria is fourth globally at 8.7%, while Nigeria is seventh at 11.5% of the GDP.


Short URL : https://goo.gl/srwLZ2
  1. https://goo.gl/Gcnv5g
  • https://goo.gl/YVisxB
  • https://goo.gl/MSZ3Gr
  • https://goo.gl/2zcpU1
  • https://goo.gl/cwKzBK

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...

Add new comment

Read our comment policy before posting your viewpoints