An open piece on Debt in Kenya

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An open piece on Debt in Kenya

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According to the regulations set down by the international monetary fund, there is a particular ratio that countries should adhere to when dealing with debt. It is recommended that it should not be higher than 40 percent for developing countries like Kenya (Braga & Vincelette, 2011). Comparatively, Kenya’s debt ration is similar to those of other African countries like Nigeria and South Africa. The difference is that these countries have a vibrant enough economy compared to Kenya. They are able to service their debt, and are not facing any debt crisis. The worry about Kenya’s debt is based on its national income. Considerably, Kenya’s population currently stands at 51 million, and this implies that every single one of these people has a debt of $ 1169 annually, calculated in United States dollars (Braga & Vincelette, 2011). Most of the population are actually in no position to service that debt, and the few who can, are then overwhelmed by the figures. In short, Kenya has an unsustainable debt levels, which are harmful.

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