Central Bank governor Patrick Njoroge at the last MPC meeting held on November 27 said the country’s debt remains sustainable adding that government was leaning more towards domestic debt as opposed to external debt. He said this would reduce dollar related risk that comes with external borrowing since interest and principal repayments are made in foreign currency. As at September public debt stood at Sh5.15 trillion comprising Sh2.54 trillion in domestic debt and Sh2.61 trillion external debt. A report by Cytonn Investments shows government borrowing is currently 15 per cent behind its projected domestic borrowing target for the current financial year. Between July and September public debt grew by Sh110 billion with domestic debt accounting for Sh60 billion compared to Sh50 billion external debt.

Source: The Star December 17, 2018 20:37 UTC