World Bank Topples China as Kenya's Biggest Creditor at Sh581 Billion

The World Bank has regained its grip as Kenya's leading creditor after earlier being overtaken by China.

This comes after Kenya borrowed Sh54 billion from the Washington DC-based in three months this year, helping it to regain its position as the country's biggest creditors.

A new report by the National Treasury shows that Kenya now owes World Bank Sh581 billion ($5.8 billion) as at the end of June, slightly ahead of China’s Sh557 billion ($5.5 billion). This translates to one fifth of Kenya’s total public debt load which crossed the Sh5 trillion mark.

China toppled World Bank at the end of December, 2017 to become Kenya’s biggest creditor for the first time ever after it gave Kenya billions for the construction of the standard gauge railway (SGR).

The government will be spending 54 per cent of revenue collected in the 2018/19 financial year to repayment of debts.

Despite local and international experts, including International Monetary Fund (IMF) warning that Kenya's soaring debt could end up being unmanageable, the government maintains it's sustainable.

“We are able to comfortably repay our debt without being insolvent. As long as we are able to repay this debt without consuming a huge chunk of our revenues in terms of servicing it, our debt is viewed as sustainable,” Treasury Cabinet Secretary Henry Rotich said recently.