Sunday, May 26, 2024

Kenya’s domestic debt makes history after hitting the 5 trillion mark

History has been made in the country after the domestic debt hit the 5 trillion mark as revealed by the the Central Bank of Kenya (CBK) weekly bulletin.

The domestic debt which is a public debt is payable to creditors within the country and is key to the macroeconomics of the country.

Out of the 5 trillion domestic debt, Treasury Bills and Bonds make up to 95 percent of the debt standing at 4.8 trillion. Treasury Bills alone account for Ksh551 billion while Treasury Bonds are at 4.3 trillion as per CBK

The data which is as at January 2024 also comprises of overdrafts which total to 91.87 billion making up of 1.8 percent of the total debt.

“Other domestic debt includes clearing items in transit, advances from commercial banks, and pre-1997 government overdraft,” said CBK

According to CBK, banking institutions and pension funds comprise of the domestic debt controlling 45.92 percent and 29.97 percent of the debt.

The news comes at a time when the government has raised taxes with the aim of clearing some of the outstanding loans most of them blamed on the previous administrations.

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