The annual interest on Kenya's dollar denominated debt rose by Sh9 billion yesterday after the shilling dropped significantly against the greenback. At least 70 per cent of Kenya's debt is denominated in the greenback. The International Debt Statistics 2021 by World Bank shows Kenya's external debt grew to $34.2 billion (Sh3.6 trillion) last year compared to $8.5 billion (about Sh900 billion) in 2009, mostly comprised of long term bonds. The latest statistics from the Central Bank of Kenya (CBK) however show the country's total debt hit Sh7.06 trillion end of August, with the external debt at Sh3.7 trillion. With 71.7 per cent of the external debt denominated in US dollar and the average annual interest on external debt at 4.5 per cent according to Treasury, it means, Kenya paid $1.1 billion or (Sh111.1 billion) in interest for its debt denominated in dollars.

Source: The Star October 28, 2020 00:56 UTC