Kenya is using Ksh.2.6 billion daily to pay debt, the same amount it borrows

Kenya is now using Ksh.2.6 billion daily to pay off its outstanding debt according to a new analysis of government spending by local dailies.

This substantive figure is coincidentally the same amount the country borrows on average in a single day.

Technically, this means that Kenya is deploying an equivalent of all of its borrowing proceeds to refinance principal debt and pay up outstanding interest on loans.

The analysis covers a 273-day period presented by the 2020/21 financial year from July 1, 2020 to March 31, 2021 and uses data from the National Treasury statement of actual revenues and net exchequer issues as of March 31.

Total public debt redemption costs between July last year and March are tabulated at Ksh.699.5 billion.

In the same period, new borrowing from both the domestic and external markets tallies to Ksh.713.8 billion rounding off to an average Ksh.2.6 billion in a day.

This comes days after uproar and discomfort among kenyans concerning IMF allocation to Kenya claiming the government is over borrowing.

In a recent interview Deputy President William Ruto acknowledged challenges in Government concerning public debt .