In the run-up to Kenya’s 2022 polls, economic issues, particularly public debt and joblessness, took centre stage. The Kenya Kwanza team led by William Ruto suggested that Kenya had over-borrowed, a habit they pledged to stop. Ruto’s rivals defended the debt, insisting investment in infrastructure would spur economic growth.
Kenya’s current overall debt stands at US$87.4 billion, or 62.3% of the GDP. At an official borrowing limit of KSh10 trillion (US$100 billion), Kenya, which had a nominal GDP of US$140 billion in 2022, would have a debt to GDP ratio of 71.4%. A debt limit of no more than 64% of the national GDP is recommended for developing countries such as Kenya. Almost half of Kenya’s debt, 49.8% (US$47.2 billion) is owed to foreign interests.
