The Kenyan national debt is projected to increase by Sh750 billion in the next 10 months. That is Sh2.6 billion a day. At this rate, parliament budget experts estimate that, by 2022 when President Uhuru Kenyatta leaves office, the debt could hit Sh9.2 trillion — more than three times the total annual budget. According to the latest Parliamentary Budget Office Report, the national budget will pile up to Sh7.5 trillion by June next year.
The increment is attributed to the low domestic revenue generated because of the disruption of businesses by Covid-19.
East African countries have borrowed nearly $2.3 billion new loans in less than three months since reporting the first Covid-19 positive case, adding to the region’s mounting debts at a time of shrinking tax revenue. The biggest chunk of the loans, taken to fund the region’s response to the Covid-19 pandemic and cushion the economies against disruptions caused by the virus, have come mainly from the International Monetary Fund (IMF). Kenya has borrowed the most out of the six East African Community (EAC) members, having signed an estimated $1.5 billion since reporting the first Covid-19 positive case on March 13.