The public debt reached Sh6.4 trillion as of May 2020, highlighting the increased local borrowing and high eternal debt caused by the drop of the local currency value.
According to the recent data, domestic debt was at Sh3.144 trillion as of May 15, and the external debt had hit the Sh3.284 trillion as of March when the local currency had started to depreciate. Early March, when the dollar was up for 101 Kenyan units, the external debt was at Sh3.1 trillion.
The debt stood at Sh2.9 trillion at the end of 2019 and escalated to Sh3 trillion in January 2020 before rising to Sh3.144 in the past few months.
The short term debt was at 30.96 percent on May 15, while the long term debt contributed to the larger percentage (69.04 percent).
The Treasury overdraft-the cash that is used to settle urgent requirements-dropped from Sh58.37 billion on May 8 to Sh56.69 billion on May 15. This shows cash needs by the exchequer emergency had decreased in the second week when compared to the first week.
However, the external debt is expected to rise following the States’ request for more funds from multilateral and bilateral institutions to curb the spread of coronavirus. The country has already received Sh180 billion two weeks ago from the World Bank and the International Monetary Fund.