– This is what it means
Alright, let’s think of Kenya as a person who makes money every year (that’s the GDP) but also has some loans to pay off (that’s the debt).
Now, if Kenya earns 100 shillings in a year, but it owes 67.2 shillings to the bank, that means for every 100 shillings Kenya makes, it owes 67.2 shillings. This is what we call the Debt-to-GDP ratio, and for Kenya, it’s 67.2%.
So, this percentage shows how much of the money Kenya earns each year would be needed to pay off the debt. The higher the percentage, the more of Kenya’s money is tied up in paying back loans, which can be a bit worrying because it means less money is available for other things like building roads, schools, or hospitals.
