Kenya will need to pay in excess of Sh1 trillion to clear its outstanding sovereign debts or Eurobonds following the sharp weakening of the Kenya shilling since issuance of the securities.
According to an analysis of the debt trend, Kenya’s outstanding Eurobonds at issuance stood at Sh697.7 billion but have since swelled to Sh1.117 trillion from the depreciation of the local currency alone.
This mirrors the risks posed by contracting debt in foreign currencies which leaves the country prone to refinancing risks at the maturity of the obligations.
