Arab Today, arab today kenyas domestic debt stands at 15bn
Last Updated : GMT 00:00:20
Arab Today, arab today
Arab Today, arab today

Kenya's domestic debt stands at $15bn

Arab Today, arab today

Arab Today, arab today Kenya's domestic debt stands at $15bn

The Central Bank of Kenya
Nairobi - XINHUA

Kenya's internal debt has hit 15 billion U.S. dollars following a rise in government borrowing, according to the Central Bank of Kenya (CBK).
The debt has jumped by nearly a billion dollars since March, as government aggressively reaches out to the public through the sale of Treasury bills and bonds to finance its activities.
The value of Treasury bond has hit 10.5 billion dollars while Treasury bills stand at 3.5 billion dollars.
The rest of the debt is in form of clearing items in transit, advances from commercial banks, Pre-1997 Government Overdraft and Tax Reserve Certificates, the CBK's bulletin showed.
In March, the domestic debt stood at 14.1 billion dollars. The debt has increased by more than 3 billion dollars since the beginning of the year following intense borrowing by government.
CBK and Treasury attribute the rise to the increase in Treasury bills and bonds. Between May and July for instance, the value of the two government securities has increased by 845 million dollars.
Of Treasury bills and bonds, it is the value of the latter that has increased significantly during the period, growing by 460 million dollars in the two months.
The long-term securities the government sold include a five- year and 20-year fixed bonds.
Kenya has intensified domestic borrowing in the past weeks despite successfully raising 2 billion dollars from sovereign bond sold to investors in Europe and U.S.
The sale of the bond, according to analysts, was to make government cut down its appetite for Treasury bills and bonds to lower interest rates in the East African nation.
Analysts noted government domestic borrowing has not dropped because of high demand for funds to cater for projects in the security, transport, education and health sectors.
Treasury Cabinet Secretary Henry Rotich has, however, assured that domestic borrowing will drop significantly as government eyes more international bonds.
"We are exploring new ways to borrow from the international market. We are currently looking at the Diaspora, Samurai and Sukuk bonds. Definitely we are going to cut our domestic borrowing this financial year," said Rotich.
Money raised from the bond, according to the official, will be used to fund infrastructure projects as well as pay off 600 million dollars loan acquired from several international banks including City Bank and Standard Chartered.
Kenya's domestic debt surged beyond the midyear target, according to CBK and Treasury. Treasury's Medium Term Debt Management Strategy released in April had projected that the domestic debt would stand at 14.2 billion dollars by the end of June, which was about 30 percent of GDP.
The debt, however, hit 14.3 billion dollars in early June and has increased in the past week to reach 14.9 billion dollars last week.
The domestic debt is mainly held by commercial banks (53 percent), insurance companies (9.4 percent) and pension funds (26 percent), among others.
External public debt has also increased significantly, hitting at about 12 billion dollars in June. The debt stood at 10.9 billion dollars in March, rising from 9.8 billion in June, 2013, according to Treasury.
The money comprises of debt owed to bilateral lenders (30.2 percent), multilateral (61.9 percent), commercial banks (6.3 percent) and suppliers' credit (2 percent).
Kenya's current total debt stock is equivalent to about 55 percent of GDP, compared to 51.7 percent of GDP in June 2013.
Treasury notes Kenya's public debt is manageable and is in line with the East African nation's debt strategy.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today kenyas domestic debt stands at 15bn Arab Today, arab today kenyas domestic debt stands at 15bn

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today kenyas domestic debt stands at 15bn Arab Today, arab today kenyas domestic debt stands at 15bn

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Youssra prepares for launching her  program

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday