By the end of 2023, Kenya had added KSh 1.93 trillion ($13.3 billion) to its overall debt. As of February 2024, the country’s public debt reached an all-time high of KSh 11.14 trillion ($76.83 billion). During this period, multilateral loans increased while bilateral loans decreased.
According to estimates by the East African publication, Kenya’s debt in 2023 increased by KSh 5.29 billion ($36.5 million) daily. Additionally, the year saw the depreciation of the nation’s currency and a rise in the cost of living.
This rise in the cost of living has continued into 2024, sparking ongoing protests against a finance bill that proposes increased taxation for citizens.
Despite earlier criticisms of excessive borrowing, the government plans to borrow over KSh 86 billion from other countries to fund the 2024/25 budget.
Kenya’s Treasury projected a KSh 597 billion deficit, to be covered through domestic and external borrowing. The Kenyan government will receive KSh 78.718 billion in loans and KSh 8.27 billion in grants from various countries, including Germany, France, Japan, and China.
In April 2024, the Treasury released estimates for the Government of Kenya’s development expenditures for the fiscal year ending June 30, 2025. The table below details the countries from which Kenya will obtain bilateral loans and grants to finance the 2024/25 budget.
Top 10 countries Ruto plans to borrow from to fund 2024/25 budget:
| Rank | Donor country | Loan (Ksh) | Grants (Ksh) | Total (Ksh) |
|---|---|---|---|---|
|
1 |
AFD – France |
25,459,635,125 |
1,027,873,310 |
26,487,508,435 |
|
2 |
KFW – Germany |
13,475,250,000 |
3,233,000,000 |
16,708,250,000 |
|
3 |
Japan |
14,035,890,223 |
353,945,784 |
14,389,836,007 |
|
4 |
China |
7,253,000,000 |
7,253,000,000 |
|
|
5 |
South Korea |
4,800,000,000 |
4,800,000,000 |
|
|
6 |
Spain |
2,969,000,000 |
2,969,000,000 |
|
|
7 |
Belgium |
2,900,000,000 |
2,900,000,000 |
|
|
8 |
Italy |
2,142,000,000 |
280,000,000 |
2,422,000,000 |
|
9 |
Finland |
970,000,000 |
500,000,000 |
1,470,000,000 |
|
10 |
Saudi Arabia |
1,244,952,996 |
100,000,000 |
1,344,952,996 |
In addition to the top 10 countries, Kenya also plans to borrow from several others, including:
- Denmark: 1,211,000,000 Ksh
- Sweden: 943,000,000 Ksh
- GIZ Germany: 323,000,000 Ksh
- Kuwait Fund for Arab Development: 919,000,000 Ksh
- Government of the United States of America (USAID/USA): 298,560,000 Ksh
- Government of Israel: 1,000,000,000 Ksh
- Government of Poland: 1,000,000,000 Ksh
- Government of Hungary: 550,000,000 Ksh
