Kenya’s public debt rose to eight-billion dollars by the end of December last year, according to figures released by the central bank on Thursday.
”Overall public debt by the end of December stood at 629,5-billion shillings (eight billion dollars) which equalled 64% of the country’s gross domestic product (GDP),”
the central bank’s monthly economic review showed.
The debt was 15,8-billion shillings higher than in June 2002, according to the survey. Foreign debt was 369,7-billion or 58,7% of the country’s total public debt.
The government of former president Daniel arap Moi relied heavily on borrowing from the domestic financial markets fo finance a huge budget deficit engendered by lack of donor funding. Aid donors put brakes on aid programmes for Kenya citing lack of commitment in the fight against corruption. An opposition alliance won elections in December last year pledging to fight graft and revive the economy. – Sapa-AFP