New digital tool launched to track Kenya’s real-time public debt

The Institute of Economic Affairs (IEA) says Kenya’s debt story is becoming harder to ignore, and even harder to track accurately.

To close that information gap, the think tank has unveiled the Kenya Debt Counter, a real-time digital platform that visualises the country’s public debt and key fiscal indicators.

IEA says the tool is designed to give the public clearer insight into the country’s finances at a time when transparency is increasingly in question.

“When we ask ourselves how much money was borrowed, and how much money was actually reported in deficit, and we compile that over the last 8 years, it suggests to us, and this requires confirmation by the debt management office that Kenya's debt is actually under reported by as much as 5 percent of GDP,” said Kwame Owino, CEO, IEA.

And the numbers are sobering. According to the platform, Kenya’s total debt has surpassed Ksh.12 trillion, split between Ksh.6.58 trillion in domestic borrowing and Ksh.5.5 trillion owed externally.

“If you talk about the three big East African countries that is Kenya, Uganda and Tanzania, Kenya has the most elevated debt levels both in terms of total quantum and also as a share of GDP. So as a share of GDP, Kenya’s is slightly less than 70 percent, just a couple of points below 70 percent, Uganda’s is about…I need to check but the last time I did it was about 55 percent or there about, less than 60 percent, and Tanzania’s is actually below 50 percent,” said Owino.

The rising burden leaves the government with no option but to confront its debt pressures. But the available options, cutting spending or raising revenue, remain politically difficult.

Government commitments such as teacher salary agreements continue to push spending upward, while Kenyans show little appetite for additional taxes.

In search of relief, the government has also turned to innovative financing tools like securitisation.

However, IEA warns that while such instruments and even arrears like pending bills may not legally classify as public debt under the constitution, they ultimately exert the same pressure on the national balance sheet.

The Debt Counter, the IEA says, is meant to sharpen public debate on the country’s debt burden.

Economic experts here in the country are of the opinion that it is time to mainstream the debt conversation, given the huge fiscal impact it could have on the country in the coming years.