Ideas & Debate Kenya walks a tightrope with plans to issue fresh EurobondTreasury secretary Henry Rotich. With a debt to gross domestic product (GDP) ratio standing at about 60 per cent, Kenya’s public debt service has never been so high. Indeed, Moody’s expects Kenya’s public debt burden to continue rising due to high budget deficits and interest payments. Thus, while the Eurobond One currently enjoys relatively low yields, domestic dynamics could change the context quite quickly raising issues about affordability and sustainability of Eurobond debt once more. The final concern with the current Eurobond issue is that it will saddle the country with substantial future debt.

Source: The North Africa Journal February 13, 2018 18:22 UTC