President William Ruto’s administration has achieved a significant reduction in the government’s debt, amounting to Ksh380 billion, bringing it down to Ksh10.87 trillion as of February 2024.
This notable accomplishment was highlighted in the weekly bulletin released by the Central Bank of Kenya (CBK) on Friday, May 3. Importantly, this marks the first instance of negative growth in the national debt since June 2022.
In June 2023, Kenya’s national debt had surpassed the Ksh10 trillion milestone, reaching Ksh10.9 trillion by November 2023. Despite Ruto’s assurance that the country was on a good economic trajectory, the debt hit another record in January 2024, reaching Ksh11.2 trillion.
Between December 2023 and January 2024, Ruto’s administration made substantial payments to international creditors, resulting in the decrease of the national debt. Some of these key payments were directed towards the Standard Gauge Railway (SGR) project and the repayment of the Eurobond floated in 2014. Additionally, Ruto’s administration retired a Ksh70 billion matured infrastructure bond.
In July 2024, further reduction in the debt is expected as Kenya is set to pay USD500 million as part of the SGR loan.
Of the current Ksh10.87 trillion debt, Ksh5.2 trillion is domestic debt. President William Ruto’s administration has prioritized local borrowing over external debt.
Kenya’s public and publicly guaranteed debt stands at Ksh5.7 trillion, with the largest creditors being China, World Bank subsidiaries, and the International Monetary Fund (IMF).
