Kenya's Public Debt Explained

Kenya’s Public Debt Explained

Public debt refers to money borrowed by the Government to finance expenditures when revenues are insufficient to meet planned spending.

Main Types of Public Debt

Domestic Debt

Borrowed within Kenya through Treasury Bonds and Treasury Bills. These are sold through the Central Bank of Kenya and are denominated in Kenya Shillings.

External Debt

Borrowed from foreign governments, international institutions (e.g., World Bank, IMF), and international capital markets (e.g., Eurobonds). Usually denominated in foreign currencies.

Who Holds Kenyan Debt?

Governments & Institutions

Foreign Governments
International Financial Institutions

Financial Sector

Commercial Banks
Pension Funds
Insurance Companies

Investors

Collective Investment Schemes
Retail Kenyan Investors
Non-Resident Investors

                When individuals or institutions buy Treasury Bonds or Bills, 
                they are lending money to the Government and earn interest in return.
            

Retail Investors

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