According to the CBK Weekly bulletin, the country’s debt has grown by almost a trillion in the past year, from Sh5.7 trillion in March 2019. External loans dominate the debt profile, rising by Sh180 billion within the month under review to hit Sh3.49 trillion from Sh3.31 trillion in April. The big three global credit rating agencies have also downgraded the country’s debt profile. The country’s debt crisis has been deteriorating since President Uhuru Kenyatta came to power in 2013, with the debt to gross domestic product (GDP) rising from 38.9 per cent to current 67 per cent amid low revenue collection. In November last year, the Senate gave the government the green light to raise the debt ceiling to Sh9 trillion by 2023, plunging the country deeper into debt.

Source: The Star July 20, 2020 20:15 UTC