The country's debt crisis has been blamed on the Jubilee government's appetite for costly commercial loans over the past nine years.
Last year, the debt reached Sh7 trillion, or 65 percent of GDP, up from Sh5.81 trillion the year before. In the last six years, it has increased by nearly Sh1 trillion annually, increasing to Sh5.04 trillion in 2018 from Sh4.41 trillion in June 2017. In June 2016, the debt stood at Sh3.62 trillion, Sh2.83 trillion in June 2015, and Sh2.37 trillion in June 2014.
Economic experts have cautioned that unless the government rapidly renegotiates with its lenders to restructure certain large loans, an economic downturn will occur.
Since taking office in 2013, President Uhuru Kenyatta's Jubilee administration has been accused of opting for costly commercial loans, catapulting the country into its worst debt morass.
Treasury officials made a bad decision to borrow heavily from the foreign sector, accumulating loans with short repayment terms. Some of the money borrowed instantly was used to construct new highways, a modern railway, bridges, and power plants, causing borrowing to rise to cover the budget shortfall.
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