Central Bank of Kenya
The country’s foreign liabilities increased by Sh313.6 billion between 2020 and 2022 as a result of increased foreign direct investment (FDI).
According to a Foreign Investment Survey conducted by the Central Bank of Kenya, the Kenya National Bureau of Statistics, and the Kenya Investment Authority, the stock of foreign liabilities increased from Sh1.75 trillion to Sh2.06 trillion over three years, representing a 17.9 percent increase.
“The stock of foreign liabilities increased by 17.9 percent from KSh 1,748.8 billion at the end of 2020 to KSh 2,062.4 billion at the end of 2022 largely attributed to an 11.6 percent increase in Foreign Direct Investment (FDI) from KSh 1,069.1 billion at the end of 2020 to KSh 1,193.6 billion at the end of 2022,” according to the statement.
Similarly, the stock of Other Investment liabilities and portfolio investments increased by Sh162.1 billion and Sh4.4 billion, respectively, during this period.
“The stock of Other Investment (OI) liabilities rose from KSh 645.9 billion in 2020 to KSh 808.0 billion in 2022.”
Similarly, Portfolio Investment (PI) increased from KSh 33.0 billion in 2020 to KSh 37.4 billion in 2022, the report noted.
This increase was due to a growth in FDI from KSh 1,069.1 billion at the end of 2020 to KSh 1,193.6 billion by the end of 2022, accounting for 11.6 percent.
Furthermore, net inflows of foreign liabilities fell from Sh229.9 billion in 2021 to Sh57.1 billion in 2022, owing mostly to lower net inflows of portfolio investment, financial derivatives, and other investments.
