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Kenya’s public debt shot up by Ksh1,93 trillion (US$13,3 billion) in the year ended December 2023, raising the country’s indebtedness to a new high of Ksh11,14 trillion (US$76,83 billion).

This translated to a daily increase of Ksh5.29 billion (US$36,5 million) for the entire 2023, the year when the Kenyan shilling shed 26,8 percent of its value against the US dollar.

The shilling’s depreciation had a heavy impact on external public debts, accounting for 73 percent (Ksh1,4 trillion) of the Ksh1,9 trillion increase during the year.

“The gross public debt as at December 31, 2023, increased by Ksh1,93 trillion to Ksh11.1397 trillion compared to Ksh9.2 trillion (US$63,45 billion) as at the end of December 2022. The gross public debt comprised 54,7 percent external debt and 45,3 percent domestic debt,” Treasury reported in the October-December 2023 quarterly economic and budget review report.

“The increase in the public debt is attributed to external loan disbursements; exchange rate fluctuations; and uptake of domestic debt during the period.”

From January to the end of December 2023, total external public debt increased by Ksh1,416 trillion, hitting Ksh6 trillion.

On the other hand, total domestic debt increased by Ksh514,48 billion, to hit Ksh5 trillion. External debts dominated the increase in the total public debt stock to account for 73 percent of the increase as the Kenyan Shilling depreciated heavily against the US Dollar, since the foreign currency accounts for more than two thirds of external debts.– Business Insider Africa