Global credit rating agency Moody's has sent a warning to Kenya over its capacity to pay its high levels of debt, faulting domestic borrowing as a strategy to service the trillions owed by Kenya.
In its latest outlook on Kenya released on Wednesday, July 23, Moody's revealed that the cost of servicing debts is expected to remain high, as the government pins its hopes on the local market to fund its budget shortfalls.
As per Moody's, continued reliance on domestic borrowing might have a huge impact on Kenya's credit sustainability and credit profile. "Kenya will rely predominantly on the domestic market to meet its fiscal financing needs with approximately two-thirds of its financing, or just under four per cent of GDP per year, from domestic sources," the agency said in an issuer report.
President William Ruto and World Bank President Ajay Banga at State House, Nairobi on March 8, 2023.
