NAIROBI, Oct. 21 (Xinhua) -- Kenya's public debt is projected to hit 8.58 trillion shillings (about 79 billion U.S. dollars) at the end of the financial year 2022 and accelerate to 101 billion dollars in the fiscal year 2024/2025, a new Treasury report released Wednesday shows.
Most of the debt (55 percent) would be external but the Treasury forecasts that domestic debt would overtake external debt by end of the financial year 2024.
As of the end of September, public debt stood at 65 billion dollars and would surge to 70 billion dollars at the end of the fiscal year 2021 due to increased borrowing, according to the Treasury.
"The net domestic financing target for financial year 2020/21 has been revised upwards necessitated by the revenue outcome for year 2019/20 and the rising expenditure pressures," notes Treasury in the Budget Review and Outlook report.
The public debt sustainability indicators illustrate that Kenya faces a high risk of debt distress.
"The debt will be restructured into concessional loans and debt with a longer payment period for ease of management," says the report.
It adds that the Kenyan government is already in the process of re-profiling the existing debt to ensure debt sustainability. Enditem
