SPECIAL REPORT: IS KENYA NEXT IN AFRICA’S DEBT CRISIS?

   Mon, 24 June 2019

The Kenyan government will again raise spending over the next year, deriving new funding from taxes on businesses and increased borrowing, while refusing to cut wasteful expenditure. Combined with unsustainably high debt servicing costs and a need to pay rapidly maturing commercial debt and Chinese infrastructure loans, Kenya may soon face a debt crisis. EXX Africa assesses that a booming economy, record foreign reserves, and a strong external position may hold off a repayment crisis until next year, although accumulating non-performing loans in the local banking sector may augur a more immediate weakness.

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