List of Countries and Banks that Ruto's Govt Owes Loans as Strong Shilling Performance Cuts Debt Size

William Ruto is the president of Kenya. China is the top creditor to Kenya when it comes to bilateral loans. Photo: William Ruto.

Source: Twitter

As of March 2024, Kenya’s public guaranteed debt has decreased to KSh 10.4 trillion from KSh 11.1 trillion in December 2023.

This reduction in debt is primarily due to the appreciation of the Kenyan shilling against major foreign currencies, which has positively impacted the country's financial obligations.

Approximately half of Kenya's debt is denominated in foreign currencies such as the US Dollar, Euro, Yen, Yuan, and Sterling Pound. Hence, fluctuations in the exchange rate play a significant role in the overall debt levels.

The recent strengthening of the shilling has been largely attributed to renewed market confidence following the partial refinancing of Kenya's $2 billion Eurobond, originally issued in 2024.

The positive response to this bond, along with an oversubscribed issuance of Infrastructure Bonds by the Central Bank of Kenya, has increased the supply of foreign currency in the market. This increased supply has driven the appreciation of the shilling.

Key Creditors

Kenya’s external debt was recorded at KSh 6.189 trillion as of January 2024. The major creditors include:

China: KSh 920.5 billion

Japan: KSh 111.5 billion

France: KSh 116.7 billion

Germany: KSh 52.8 billion

Italy: KSh 31.4 billion

Belgium: KSh 28.4 billion

Spain: KSh 16.3 billion

USA: KSh 1.1 billion

Austria: KSh 2.1 billion

Finland: KSh 620 million

Denmark: KSh 320 million

In addition to these countries, Kenya owes smaller amounts to various other creditors, including members of the Paris Club and non-Paris Club creditors, totaling KSh 27.6 billion.

International Organisations

Kenya also has significant debt obligations to international financial institutions:

African Development Bank/African Development Fund (ADB/ADF): KSh 607.6 billion

European Investment Bank (EIB): KSh 31.7 billion

International Development Association (IDA): KSh 1.8 trillion

International Fund for Agricultural Development (IFAD): KSh 41 billion

International Monetary Fund (IMF): KSh 431.2 billion

Eurobonds

Kenya has issued several Eurobonds to finance its budget and infrastructure projects. These bonds, varying in maturity and interest rates, have contributed significantly to the country’s overall debt.