Kenya has emerged as one of Africa’s most indebted countries to the International Monetary Fund (IMF) in 2024, ranking second with a total debt of $3.02 billion (about KSh 437.9 billion). IMF managing director Kristalina Georgieva and President William Ruto during past meetings.
Apart from Kenya, many African countries have become highly reliable on external debts to fund development projects as well as to navigate its fiscal challenges and implement crucial economic reforms. The IMF Global Debt Database (GDD) revealed that African nations collectively face mounting debts to global financial institutions, reflecting efforts to address economic crises and stabilise fiscal frameworks.
Egypt leads the continent with $9.45 billion in IMF credit, while Kenya closely follows. Kenya’s debts have been integral to supporting its ongoing economic reforms, including enhancing revenue collection, reducing fiscal deficits, and implementing structural changes. However, the increasing debt levels have sparked debates over the nation’s ability to achieve long-term economic sustainability, and policymakers are now grappling with striking a balance between immediate fiscal needs and ensuring future financial stability.
During a visit to Nairobi, IMF Deputy Managing Director Nigel Clarke further warned that Kenya must refrain from taking on any more loans outside the context of a comprehensive fiscal strategy designed to reduce its debt vulnerabilities.
Top African IMF borrowers Egypt: $9.45 billion (KSh 1,370.25 billion) Kenya: $3.02 billion (KSh 437.90 billion) Angola: $2.99 billion (KSh 433.55 billion) Ghana: $2.25 billion (KSh 326.25 billion) Côte d’Ivoire: $2.19 billion (KSh 317.55 billion) Democratic Republic of Congo (DRC): $1.6 billion (KSh 232.00 billion) Ethiopia: $1.31 billion (KSh 189.95 billion) South Africa: $1.14 billion (KSh 165.30 billion) Cameroon: $1.13 billion (KSh 163.85 billion) Senegal: $1.11 billion (KSh 160.95 billion)
by Elijah Ntongai
