The question a typical Kenyan should ask is whether the rising debt is optimal for the country or not (Kenya being a developing country). The debt stock as at December 2020 stood at Sh7.2 trillion, which is estimated as 65.6 per cent of the GDP. The total external debt is Sh3.7 trillion, while the domestic debt is Sh3.4 trillion. This being done to accommodate the fiscal deficits for the 2021-22 budget. This will help reduce the financing risks as the government will have to develop the optimal debt servicing schemes.

Source: The Star February 22, 2021 01:52 UTC