REPORTS FROM THE
education sectors get least
external loans: Finance Ministry
biggest recipient of the external loans is the
energy sector, followed by general economic and
commercial labor affairs and public administration
Kenya’s health and
education sectors receive the least amount of external
financing from bilateral and multinational lenders.
new report from the country’s Ministry of Finance
showed that the sectors, though very crucial, received
5.4 percent and 5.6 percent of total external loans
extended to Kenya in the period ending Jan. 31.
and education sectors receive the least share of
external loan funding,” said the report titled
Month Debt Bulletin received on Thursday.
biggest recipient of the external loans is the energy
sector, followed by general economic and commercial
labor affairs and public administration.
energy, infrastructure and information and
communication technology sector received 37 percent of
the external public debt, which stood at 9.8 billion
U.S. dollars at end of January.
affairs sector got 20 percent, public administration
14 percent, agriculture 11 percent and environment 8
public and publicly guaranteed external debt
increased by 137 million dollars to 9.8 billion
dollars in January, from 9.7 billion dollars in
December last year,” said the report.
ministry noted that the rise in the external public
debt is because of currency fluctuations.
increase can be attributed to the weakening of the
Kenya shilling against the Euro and the U.S.
dollar,” said the ministry, adding that Kenya’s
external debt portfolio is mainly held in Euro (33
percent), followed U.S. dollars (31 percent), Yen
(16 percent) and Yuan (6 percent), among others.
to the ministry, official creditors account for 91
percent of total public and publicly guaranteed
of this, debts owed to multilateral creditors (5.8
billion) dominate the portfolio (59 percent of the
total). Bilateral debt stands at 3.1 billion dollars
(31.97 percent of the total), which includes 465
million dollars guaranteed debt,” said the
the multilateral category, African Development Bank
and International Monetary Fund account for the
largest proportion of external credit, while Japan,
France and Germany are the leading creditors in the
commercial bank debt constitutes 7.16 percent (701
million dollars) of the total public and publicly
guaranteed external debt.
the period under review, Kenya’s projected
cumulative external debt service stood at 263 million
and interest projections for the month of January
were 28 million dollars and 15 million dollars
respectively. Multilateral and bilateral creditors
constitute 49 percent and 44 percent of the
cumulative projected debt service respectively
during the period under review,” said the
the actual cumulative debt service as at January 31
was 229 million dollars. Actual principal and interest
payments for the month of January were 23 million
dollars and 6 million dollars respectively.
government external debt strategy of contracting or
guaranteeing external loans with highly concessional
terms to minimize interest rate cost, the average
interest rate and grace period on the external debt
portfolio was 0.9 percent and 8 years, respectively.
In addition, the average maturity period for
external loans was 29 years while the average grant
element was 68 percent,” said the debt report.
the other hand, the East African nation’s domestic
debt increased by 329 million dollars to 9.9 billion
dollars in January from 9.54 billion dollars in
December last year.
banks remain the biggest holders of the government
debt, which is mainly held in Treasury bond (74
percent) and Treasury bills (20.3 percent).
banks continued to hold the largest proportion of
the outstanding government debt securities amounting
to 5.8 billion dollars. The non-banks held 43
percent of the outstanding government paper, mostly
Treasury bonds. The non-banks category comprises
non-bank financial institutions, National Social
Security Fund, parastatals, insurance companies,
building societies, pension funds and
individuals,” said the ministry.
who invest through nominee accounts in the local banks
hold government debt worth 101 million dollars.
to the Central Bank of Kenya, gross government
domestic debt increases by an average of 50 million
dollars every week on account of Treasury bills and
as at end January, Kenya’s public and publicly
guaranteed debt stood at 21 billion dollars. This is
47 percent of the East African nation’s Gross
structure of public and publicly guaranteed debt
shows that 54 percent of the total debt is domestic
debt while 46 percent is external debt,” said the
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