NAIROBI (Xinhua) --
Kenya’s domestic debt rose by 1.5 billion U.S.
dollars in the second quarter of this year to hit 25 billion
dollars, latest data from the Central Bank indicated Monday.
The debt stood at
24.9 billion dollars at the end of June, up from 23.4 billion
dollars in March on account of accelerated borrowing.
during the period, intensified borrowing through Treasury bills
and bonds, with the latter being sold again through tap sales
after initial offers.
In April, May and
June, the government put up for sale Treasury bonds worth 1.2
billion dollars, or 400 million dollars each month.
However, uptake of
the bonds during the period was lackluster as compared to
Treasury bills, which attracted huge interest from investors in
search of higher yields.
The rise in domestic
debt put Kenya’s overall public debt at slightly above 50
billion dollars, with external debt standing at 25.1 billion
to analysts, the buildup in domestic debt in the second half of
the year is expected to slow down.
“The government is
likely to remain behind its borrowing target for the better part
of the first half of the financial year. The 2018/2019 budget
gives a domestic borrowing target of 2.72 billion dollars, 8.6
percent lower than the 2017/2018 fiscal year’s target of 2.97
billion dollars, which would result in reduced pressure on
domestic borrowing,” Cytonn, a Nairobi-based investment firm,
said in a brief on Monday.