Kenya to borrow US$2.47 billion from foreign sources in FY 2020/21

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Kenya targets to borrow 247.3 billion shillings (about 2.47 billion U.S. dollars) from external sources in the financial year 2020/2021, National Treasury said on Thursday.

The cash will be used to finance budgetary deficits, noted Treasury, as it added the east African nation projects to borrow 3.18 billion dollars from domestic sources during the period.

“To finance the fiscal deficit in the financial year 2020/2021, domestic borrowing is projected at 3.18 billion dollars and foreign financing at 2.47 billion dollars. In the medium term, debt is projected to remain sustainable,” said Treasury in a debt report.

Kenya’s proportion of foreign borrowings against domestic borrowings as a percentage of total debt increased in the financial year 2019/2020.

The East African nation’s debt currently stands at some 60 billion dollars, with domestic debt contributing to 29 billion dollars of the amount and foreign the rest.

Foreign debt has been instrumental in keeping the Kenyan shilling stable against global macroeconomic shocks, particularly through the currency reserves held at the Central Bank. Enditem

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