Home ECONOMY Kenya’s Domestic Debt Rises to KSh3.67 Trillion at End of May

Kenya’s Domestic Debt Rises to KSh3.67 Trillion at End of May

by biasharadigest

Kenya’s domestic debt rose to a record high of KSh3.67 trillion on 28th May 2021 from KSh3.63 trillion on 30th April 2021 according to data from the Central Bank of Kenya (CBK).

Treasury bonds increased to KSh2.83 trillion from KSh2.80 trillion, while treasury bills jumped to KSh759 billion from KSh747 billion on 30th April 2021. Overdraft at the Central Bank fell to KSh60.17 billion at the end of May compared to KSh65.84 billion at the end of April this year.

51.45% of the government domestic debt was held by Kenyan commercial banks, 30.59% by pension funds, 6.64% by insurance companies, 5.43% by state corporations, and 5.9% by other investors.

The amount of foreign currency reserves held by the Central Bank rose for the first time in three weeks to $7.51 billion on 3rd June 2021 from $7.48 billion on 27th May 2021. The reserves are adequate to provide 4.59 months of import cover, above CBK’s statutory requirement of at least 4 months of import cover.

According to CBK’s Weekly bulletin report, excess reserves held by commercial banks stood at KSh 15.4 billion at the end of last week. The average interbank rate, which is the rate of interest charged on short-term loans between Kenyan banks, dropped to 4.77% on 3rd June from 5.01% on 27th May.

Related: Foreign Currency Reserves Fall to 5-Week Low

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