What Is Kenya’S Debt To Gdp

What is Kenya’s debt to GDP?

Both debt and GDP in Kenya have a close relationship in which currently Kenya have a lot of liabilities that need to be settled or\and interest or principal accounted from the creditors such as China and IMF using the income gained from the sale of final goods and services produced in Kenya. Primarily this is the number of years that Kenya is expected to pay back debt if GDP is purposely for the debt repayment. The ratio of national debt to GDP of Kenya was forecasted in 2022 to continuously decrease in years 2022 to 2027 by a total of 13.3% where the ratio is estimated to amount to 56.06% in 2027.

Year                                                    National debt in relation to GDP

2027*                                                 56.06%

2026*                                                  57.71%

2025*                                                   60.87%

2024*                                                   64.62%

2023*                                                    67.55%

2022*                                                    69.38%

The above ratio of debt to GDP in Kenya is used by investors to make future predictions on the ability to make future payments on its debt. If the ratio of debt to GDP is higher Kenya will take a lot of years to pay back its debt and also will discourage foreign investors due to financial panic in domestic and international markets.  Currently Kenya have been officially reported by the IMF to have a debt to GDP ratio of 69% indicating that Kenya’s debt level is $76 Billion. Kenya’s public debt to GDP ratio declined from 64.1% in June 2003 to 38.1% in June 2012 but later increased due to spending mainly on the infrastructure and recently greatly affected by the spending on COVID-19.

Kenya’s government debt to GDP ratio is updated quarterly available from December 2009 to September 2022 of which in year 2020 December it was registered the highest of 68.0% and lowest in year 2010 March of 39.7%. In September 2022 the Kenya’s National Government Debt reached 72.1USD bn.