Kenya Would Suffer Debt Risks in the Next Two Years – International Bank

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In the latest reports on the African debt audit conducted by Standard Bank Group Limited based in Johannesburg, South Africa, Kenya has been ranked among five countries with weak economies dependent on debts.

It was listed with countries like Ghana Angola, Ethiopia, and Zambia.

In a comprehensive interview with Bloomberg, Jibran Qureishi, Head of African Research with Standard Bank, forewarned that Kenya would suffer a debt crisis in the next two years.

Qureishi pointed out that Kenya had amassed a huge debt, especially commercial debt, and had impacted foreign-exchange reserve costs to 35 percent.

Also, Kenya will face a challenge in carrying through development projects as it will face a 43 percent cut of the total revenue collected in a financial year to service the loan.

Aggravating the matter, Kenya is deliberating over a Ksh114 billion loan from Eurobond before June 2022.

Additionally, Kenya is gearing up for the 2022 General Elections slated for August, and President Uhuru Kenyatta has plans to borrow a ksh106 billion loan.

This loan will act as a cushion for his successor, who will be announced in August, two months after the 2022/23 budget is released by the National Treasury.

Kenya had borrowed Ksh255 billion from International Monetary Fund (IMF) in April 2021 to tackle the effects of Coronavirus but was allowed to withdraw only Ksh29.4 billion on November 5.

The post Kenya Would Suffer Debt Risks in the Next Two Years – International Bank appeared first on LitKenya.

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