In response to inquiries about X from Kenyans, Ndii stated that there would be consequences if Kenya failed to meet its duties despite the difficult economic conditions.
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A deep recession is a period of economic downturn characterized by widespread job losses, rising unemployment, and rising consumer prices. "You must tell them to be realistic. What's the worst if we default?" Mutisya Willy stated:.
"A deep recession," Ndii responded.
Kenya's total outstanding debt as of March 31, 2024, was Ksh10.4 trillion, including domestic and foreign obligations. However, domestic debts account for the majority of the debt portfolio. External lenders owe Ksh5.16 trillion, while domestic lenders, including banks, owe Ksh5.26 trillion.
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According to the Office of the Controller of Budget, the strengthening of the shilling has helped to lower the debt portfolio to Ksh1 trillion. "Public debt increased 1 percent from Ksh10.28 trillion as of June 30, 2023, to Ksh11.14 trillion as of December 31, 2023, and was reduced to Ksh10.42 trillion as of March 31, 2024. Between December 31, 2023, and March 31, 2024, external debt decreased by 15.2 percent, while domestic debt increased by 9 percent. This decrease in external debt is due to the strengthening of the Kenyan shilling against major foreign currencies," the CoB noted in its budget.
The majority of external debt is owed to countries like China as well as multinational lenders like the World Bank and the International Monetary Fund. Notably, Kenya has already read the USD 2 billion Eurobond maturing next month.
President William Ruto, on the other hand, has pledged that the government will satisfy all of its debt obligations, which is why he wants Kenya to increase its own revenues.
LINK: https://www.kenyans.co.ke/news/102140-kenya-experience-deep-recession-incase-loan-defaults-ndii?utm_source=Twitter&utm_medium=DK&utm_campaign=Promotion