BNP Paribas warns Kenya risks foreign debt default

Kenya is at a risk of defaulting on foreign debt obligations should the current accumulation rate in borrowing be followed by further devaluation of the shilling, analysts at financial services giant BNP Paribas have cautioned.

In a brief to Bloomberg Intelligence, the head of fixed income for emerging markets at BNP Paribas Investment Partners Bryan Carter said a new round of devaluation for African countries would lead to a sharp rise in debt-to-GDP ratios among African countries, which have in recent years taken up large amounts of dollar debt through Eurobond issues.