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How Kenya averted risk of debt default during the year
A maturing $2 billion Eurobond that Kenya had contracted in June 2014 raised fears of a possible sovereign default, which would have had devastating consequences for the economy.
In October 2023, international commercial lenders made it clear that they would only lend to the Kenya government, if it was prepared to pay between 13 and 19 percent in interest on dollar loans.
At the heart of these steep rate demands was a concern that the government would struggle to repay a maturing $2 billion Eurobond, that it had contracted in June 2014. This bond was Kenya’s debut issuance of its kind, and was attracting annual interest of 6.785 percent, a bargain at prevailing rates.
