It is now clear that Kenya is headed straight into debt crisis headwinds, and it's an appointment it cannot avoid.
Kenya's debt servicing cost to export ratio has crossed the IMF-recommended threshold of 21 percent for the first time. A third of its total debt is made up of commercial debt such as Eurobonds and syndicated loans. So, the burden of servicing these debts that are dollar-dominated from dollar exports is becoming a burden after crossing the recommended threshold. In short, the country's debt sustainability in the short-term is off track.
