Kenya’s Treasury released new information about the country’s rising debt load, announcing that it’s about to reach Sh6 trillion ($57 billion.) Last week, Parliament approved a new, higher debt ceiling of Sh9 trillion ($87 billion) in part to accommodate 44 new loan requests to pay for some of President Uhuru Kenyatta’s “Big Four” infrastructure projects — some of which will be financed through Chinese lending.
- The Treasury says as long as the debt-to-GDP ratio remains under 70%, the government will be able to service its loans. At the end of the 2018/19 fiscal year in June, the total public debt as a percentage of GDP was 55.2%.
- The biggest increase in Kenyan public debt in recent years has come from China and also multilateral lenders such as the World Bank.
- Get a daily email packed with the latest China-Africa news and analysis.
- Read exclusive insights on the key trends shaping China-Africa relations.
- Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South.