Key questions:
- Kenya is consulting with the IMF and World Bank on its upcoming eurobond repayment. What are the implications of a Bretton Wood alliance for the East African giant?
- Does Kenya have other choices for servicing its debt, and is there a choice that can ensure debt repayment without adverse economic repercussions?
Kenya’s upcoming $2 billion Eurobond maturity in June 2024 and its outreach to the IMF and World Bank highlight African economies' challenges with rising global interest rates.
If Kenya unlocks additional financing from the development finance institutions, it will be the latest in a series of augmentations to existing programmes, which have seen the country tap into cheaper credit from the Bretton Woods institutions. In May, Kenya tapped into a $1 billion (148.8 Khs billion) credit facility from the World Bank, revised from the initial $750 million (111.6 Khs billion) owing to the country’s requirements around budget support.
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