Trend in the share of Kenya’s Total External Public Debt Stock to GDP, 1999 – 2018


Post Date: 24 April 2019   |   Category: Debt   |   Hits: 746


Introduction

As earlier introduced, external public debt is one of the components of public debt and includes various financial tools such as bilateral & multilateral loans, loan advances from international commercial banks and credit from suppliers.  External public debt to GDP ratio is critical in identifying to what extend Kenya is exposed to external risk factors for instance fluctuations in foreign exchange rate.

Trend in the share of Kenya’s Total External Public Debt Stock to GDP, 1999 – 2018 

Source:  Central Bank of Kenya, World Bank and National treasury

Total external public debt as a proportion of GDP has been relatively unstable over the years analyzed. Between 1999 and 2000, there was a 5% increase in the proportion of external public debt to GDP. However, between 2000 and 2006 the proportion of external public debt to GDP declined signifying the government’s appetite for domestic debt rather than external debt.  Between 2009 and 2013 the proportion of external public debt to GDP was relatively stable ranging from 15% to 20%. As from 2013 to 2017, the share of external public debt to GDP rose significantly and this could have been attributed to the government’s pursuit of the Euro Bond and other commercial funding from China.