Kenya - National Treasury Capacity Strengthening Project

The project will support the GoK’s efforts to mitigate macro-fiscal and debt management challenges and risks. Kenya faces elevated debt vulnerability risks largely resulting from fast-changing public debt size and portfolio composition in favor of more expensive and shorter-term commercial loans. The country’s debt stock is expected to rise by 7.9% in 2020 against 6.3% in 2019 as the GoK contracts additional debt to fight the health, social and economic impact of the COVID-19 pandemic. This rising debt level poses a significant risk to debt sustainability, which could negatively affect macroeconomic stability and limit the GoK’s ability to finance development programs.