Mystery of Kenya’s rising debt obligations and never reducing loan --[Reported by Umva mag]

• Kenya’s rising debt obligations have failed to reduce the debt that currently stands at about $82.2 billion.
• Service costs went up from 58% after the government paid $2 billion Eurobond.
• Sovereign bond-holders accounted for $6.6 billion of the external public debt stock.

The National Treasury has laid bare the pain awaiting Kenyans in repaying loans borrowed from external lenders and domestically. Fresh data tabled in Parliament reveals that taxpayers will dig deeper in their pockets in the next financial years to repay loan obligations.

Details show that for every $0.78) Sh100 the government collects, $0.53 (Sh68) goes to servicing the $82.2 billion (Sh10.6 trillion) debt pile reported as of June 30, 2024. The treasury revealed that the country’s debt stock increased by $2.3 billion (Sh303 billion) compared in the year ended June 2024 compared to a year ealier. Currently, Kenya’s debt stock is projected to hit $100.7 billion (Sh13 trillion) …

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