Cost of Kenyan Debt

Cost of Kenyan Debt

What is the Cost of Kenya Public Debt?

The source of debt has a direct impact on the cost of servicing it.

Sources of Debt

  • Concessional: Borrowed at below market interest rates.
  • Semi-Concessional: Borrowed at partially concessional terms.
  • Commercial: Borrowed at market interest rates.

If the bulk of debt is commercial, the cost of servicing it will be higher compared to concessional debt, which carries lower interest rates.

47%
Commercial
Borrowed at market interest rates.
33%
Concessional
Borrowed at below market interest rates.
20%
Semi-Concessional
Borrowed at blended terms.
Kenya public debt composition as of June 2025 shows that nearly half of the portfolio is commercial, which increases the overall cost of servicing.