Henry Rotich, the Treasury secretary. FILE PHOTO | NMG
Summary
- China gave Kenya a total Sh487 billion ($4,733.94 million) in the 12 months through end of September 2017.
- Treasury report shows that in just three months to September, China lent Kenya Sh122.73 billion ($119.16 million).
- Official data shows that Kenya’s overall public debt increased by Sh777.5 billion in the year to September 2017 to reach Sh4.4 trillion.
China has once again topped the list of 14 countries that
advanced bilateral loans to Kenya in the past year, according to newly
released Treasury data.
Beijing gave Nairobi a total Sh487 billion ($4,733.94 million) in the 12 months through end of September 2017.
The report shows that in just three months to September, China lent Kenya Sh122.73 billion ($119.16 million).
Japan,
which has lent Kenya ($879.29 million) is second, followed by France
($687.89 million), and Germany ($314.25 million) respectively. Other
lenders jointly account for $362.06 million in bilateral loans to Kenya.
IDA/IFAD
and African Development Bank (ADB/ADF) top the list of multilateral
financiers to Kenya having lent $5,132 million and $1,993 respectively.
Official
data shows that Kenya’s overall public debt increased by Sh777.5
billion in the year to September 2017 to reach Sh4.4 trillion.
Most
notable is the speed at which the country is accumulating public debt
which rose from Sh3.7 trillion in September 2016 to Sh4.486 trillion in
September 2017, according to the latest budgetary and economic review
report.
The gross debt comprises of 51.5 per cent external and 48.5 per
cent of domestic debt. “The overall increase (Sh777.5 billion) is
attributed to the increase in external debt arising from exchange rate
fluctuations and, disbursements of external loans during the period,”
Henry Rotich, the Treasury secretary, says in the first quarter report
for the financial year 2017/18.
ALSO READ: IMF cautions over Kenya debt vulnerability
The
report, which Leader of Majority Aden Duale tabled in Parliament, shows
that the net public debt increased Sh772.3 billion from Sh3.27 trillion
as at end of September 2016 to Sh4.04 trillion by end of September
2017.
The stock of domestic debt rose by Sh326.5
billion from Sh1.85 trillion in September 2016 to Sh2.17 trillion in
September 2017. The report shows that the stock of Treasury Bills held
by Central Bank, Commercial Banks, Non-Banking Financial Institutions
and Non Residents increased by Sh106.6 billion from Sh618.2 billion in
September 2016 to Sh724.8 billion in September this year.
The
Treasury says external public debt stock increased by $4,216.1 million
from $18,155.1 million in September 2016 to $22,371.2 million by end of
September 2017.
“The debt stock comprised 32.1 per
cent, 36.5 per cent, 30.7 per cent and 0.7 per cent of debt owed to
bilateral, multilateral institutions, commercial banks and suppliers’
credit, respectively,” Mr Rotich said.
The
increase is attributed to disbursements made during the period. The
Treasury says the total cumulative debt service payments to external
creditors amounted to Sh26.4 billion at the end of September 2017.
“This comprised of Sh9.1 billion (34.4 per cent) principal and Sh17.3 billion (65.6 per cent) interest.
Cumulative
external financing between July 1 and September 30, 2017 amounted to a
net borrowing of Sh7.5 billion. Inflows amounted to Sh16.5 million
against a target of Sh29.7 billion in the period under review.
“The
actual disbursement amount included Sh2.1 billion project cash loans,
Sh14.2 billion project loans appropriations in aid (A.I.A) and Sh244
million project loans A.I.A for standard gauge railway (SGR),” Mr
Rotich said.
On domestic financing, Mr Rotich said net
borrowing amounted to Sh49.2 billion against a target borrowing of
Sh39.3 billion by end of September 2017.
The borrowing
comprised of Sh12.6 billion from commercial banks, Sh26.3 billion from
non-banking financial institutions, Sh1.9 billion from non-residents and
Sh8.3 billion from the Central Bank of Kenya.
No comments :
Post a Comment