REPUBLIC OF KENYA MINISTRY OF FINANCE ANNUAL PUBLIC DEBT REPORT JULY 2011 – JUNE 2012 December 2012 MINISTER FOR FINANCE Hon. Robinson Njeru Githae, EGH, MP PERMANENT SECRETARY Joseph K. Kinyua, CBS FINANCIAL SECRETARY Mutua Kilaka, SS, CBS DIRECTOR OF DEBT MANAGEMENT John K. Murugu, OGW TECHNICAL TEAM Felister Kivisi Stella Osoro Faith Njau Charles Kairu Benard Gibet Lawrence Okwaro George Kariuki Denis Okungu Leonard Thotho Racheal Njoroge Robert Osudi The Public Debt Report is an annual publication of the Ministry of Finance. Repro- duction in full or in part is permitted provided due acknowledgement of the source is made. This Report is available on the Treasury website www.treasury.go.ke. Other reports that may be downloaded include the Monthly Debt Bulletin and the Quarterly Eco- nomic and Budgetary Review (QEBR). The Central Bank’s website www.centralbank. go.ke hosts the Monthly Economic Review and Weekly Bulletin. Enquiries covering the publication should be addressed to: The Director, Debt Management Department, First Floor, Treasury Building, Harambee Avenue P.O. Box 30007-00100, Nairobi, Kenya Tel: (254) 20 2252299 Fax: (254) 20 315294 Email:
[email protected] Table of Contents Message from the Minister for Finance iv Message from the Permanent Secretary v List of Abbreviations vi Executive Summary vii Introduction 1 1. Financing of Budget Deficit 2 2. Domestic Debt 8 3. External Debt 19 4. Publicly Guaranteed Debt 24 5. On-Lent Loans and Contingent Liabilities 27 6. Disputed External Commercial Debt 30 7. Debt Strategy and Debt Sustainability 33 8. Reforms in Public Debt Management 37 9.