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Kenya borrowed Ksh.314.6 billion in three months to September 30 according to new data from the National Treasury.
Kenya borrows Ksh.314.6 billion in three months
Citizen TV
Oct 18, 2021 4:23 AM
File Photo of The National Treasury.
In Summary
This to represent a 49.5 per cent rise in new loans taken in a similar period in 2020 when total borrowing stood at Ksh.210.4 billion.
The loans taken include Ksh.306.8 billion in gross domestic borrowing and Ksh.7.7 billion in external loans and grants.
Translated into a daily cycle, this would imply that the government has borrowed an estimated Ksh.3.4 billion every 24 hours.
Kenya borrowed Ksh.314.6 billion in three months to September 30 according to new data from the National Treasury covering the first quarter of the 2021-22 fiscal year.
This to represent a 49.5 per cent rise in new loans taken in a similar period in 2020 when total borrowing stood at Ksh.210.4 billion.
The loans taken include Ksh.306.8 billion in gross domestic borrowing and Ksh.7.7 billion in external loans and grants.
Translated into a daily cycle, this would imply that the government has borrowed an estimated Ksh.3.4 billion every 24 hours.
Treasury has raised its borrowing threshold in the current fiscal year on the back of increased expenditure needs against a largely depressed revenue base occasioned largely by the COVID-19 pandemic.
This leaving the National Treasury with little scope to plug the hole but borrow from both local and foreign markets.
By the end of June 2022, the government is estimated to borrow a cumulative Ksh.1.008 trillion from the local market and another Ksh.379.7 billion in foreign loans.
The sum total of domestic borrowing includes Ksh.661.6 billion in net loans and Ksh.346.8 billion in local debt roll-overs.
In contrast, the Treasury had sort to raise only Ksh.786.6 billion locally in the financial year concluded on June 30 this year and Ksh.373.2 billion in external loans.
The variance to higher borrowing mirrors the government’s increased appetite for new loans to foot its mounting bills