| Post date: Wed, Apr 24, 2019 | | Category: Debt | |
Introduction
As earlier introduced, external public debt is one of the components of public debt and includes various financial tools such as bilateral & multilateral loans, loan advances from international commercial banks and credit from suppliers. External public debt to GDP ratio is critical in identifying to what extend Kenya is exposed to external risk factors for instance fluctuations in foreign exchange rate.
Trend in the share of Kenya’s Total External Public Debt Stock to GDP, 1999 – 2018

Source: Central Bank of Kenya, World Bank and National treasury
Total external public debt as a proportion of GDP has been relatively unstable over the years analyzed. Between 1999 and 2000, there was a 5% increase in the proportion of external public debt to GDP. However, between 2000 and 2006 the proportion of external public debt to GDP declined signifying the government’s appetite for domestic debt rather than external debt. Between 2009 and 2013 the proportion of external public debt to GDP was relatively stable ranging from 15% to 20%. As from 2013 to 2017, the share of external public debt to GDP rose significantly and this could have been attributed to the government’s pursuit of the Euro Bond and other commercial funding from China.

83% are imprisoned for less than 2 years, including those held for less than 1 month. 16.3% of prisoners are convicted for 2 years or more, with 0.5% sentenced to life imprisonment and 0.2% added to the prison population. The Number of the Week is 83%, the share of prisoners convicted for less than two […]
In the advent of increased Non-Communicable Diseases such as cancer that require long time treatment, reduction of the Out-of-pocket payments is key in sustaining affordability and access to health care services. These can be achieved through increased insurance both by the government and the private sector.
Treasury bonds are a secure, medium- to long-term investment tools that typically offer periodic interest payments semiannually throughout the bond’s life. The Central Bank auctions Treasury bonds on a monthly basis, but offers a variety of bonds throughout the year, so prospective investors should regularly check for upcoming auctions. Outstanding Treasury Bonds increased by 11.2 per cent to Ksh 1,152,041 million in June 2016 from Ksh 1,035,662 million in June 2015.
In June 2016 compared to June 2015, the stock of Treasury bills increased by 84.4 per cent to Ksh 588,088 million from Ksh 318,929 million while the proportion held by commercial banks increased by 67.4 per cent to Ksh 361,859 million from Ksh 217,742 million. In the same period, holdings by pension fund institutions increased to 20.1 per cent from 12.8 per cent while proportion held by insurance companies decreased to 3.1 per cent from 6.5 per cent.
The medium term debt strategy for the financial year 2016/17 emphasized on the need to develop the domestic market by increasing the issuance of Treasury bonds over the medium term. The strategy targeted a mix of 60 percent and 40 per cent for external and domestic financing, respectively.