Budget: Kenyan govt’s borrowing exceeds target

Uhuru Kenyatta
Kenya's President Uhuru Kenyatta delivers a statement to members of the media at the State House in Nairobi, Kenya September 21, 2017. REUTERS/Baz Ratner

Heavy borrowing from the domestic market to meet budget deficit has seen the Kenyan government exceed its target for this financial year as it nears the end, the Treasury department said on Tuesday.

According to the department, domestic borrowing currently stands at $2.87 billion for the financial year 2017 to 2018, an excess of $181 million.

The government had targeted to borrow some $2.75 billion by the end of this financial year.

The excess borrowing can be attributed to last year’s two elections, which led to heavy spending.

The government is also funding several infrastructure projects that include road construction.

The borrowing is expected to rise in the next two weeks before end of the financial year.

The government is currently selling a $400 million bond, besides the weekly Treasury bills amid high investor appetite.

“Borrowing from domestic market is projected at $2.93 billion at the end of June and external borrowing at $3.2 billion,” said the Treasury in a debt brief.

According to the Central Bank, current domestic debt stands at $24.4 billion.

On the other hand, external debt stands at $25 billion.

Overall public debt is estimated at about 49 billion dollars, an equivalent of at least 50 percent of the gross domestic product.

(Xinhua/NAN)

Support PREMIUM TIMES' journalism of integrity and credibility

 

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required

DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: New Discovery! Click Here To See A Miracle Device That Can Cure DIABETES, BLOOD PRESSURE, STROKE, ARTHRITIS, PAINS, OBESITY And 50 Other CHRONIC DISEASES Without Drugs Or Herbs.. Click Here Now To See It


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.