According to Bloomberg, the Ministry of Finance announced on its website that the debt increased by 632 billion shillings (5,428 million euros) to 5,039 billion shillings (43,000 million euros).
The largest economy in East Africa increased 1,370 billion shillings (11.7 billion euros) in taxes in the fiscal year at the end of last year.
Total revenue fell below the target of 1,660 trillion shillings (14.2 billion euros), forcing the state to make itself indebted, namely on the domestic market, by 10% more than initially budgeted.
It also required € 331.6 billion (€ 2.840 billion) in external loans, bringing external debt to € 2.690 billion (€ 23 billion), just over half of total government debt.
According to today's statement, the tax administration attributed low performance to low absorption through recurring and development expenditures.
Kenya plans to spend 2.5 trillion shillings (21.5 billion euros) in fiscal year 2018/19 and projects internal revenues with 1,690 trillion shillings (14,500 million euros).
Research firm BMI Research, part of the Fitch Group, estimates that the debt of the country will amount to the equivalent of more than 60% of the gross domestic product of 2018.
The tax authorities intend to hire up to 20 debt managers to help formulate policies, revise annual credit limits and prepare proposals for loan restructuring.
On July 10, the rating agency Moody & # 39; s considered that Kenya, Rwanda, Tanzania and Uganda are the countries that will face greater debt burden challenges in West Africa due to significant increases.
"The institutional and fiscal profile of these four countries will be increasingly tested in the coming years because of the risks associated with the external debt position, lower repayment capacity and increased dependence on trade finance and foreign exchange risk," analysts write in a note to investors and Lusa has had access to it.
SYSC (MBA) / PVJ