President Ruto has Stated that Kenya Will Not Miss Debt Payments.
According to President William Ruto, Kenya will not default on its debt and has plans to increase tax collection over the next two years.
To ease the burden of debt servicing, Ruto’s administration, which took office in September, has promised to minimize costly commercial borrowing in favour of more affordable sources like the World Bank. Under Ruto’s predecessor Uhuru Kenyatta, the country of East Africa saw a rise in its public debt that prompted concerns from ratings agencies.
“This nation of ours won’t declare bankruptcy. I would like to reassure you. Our nation won’t break its commitments”. We have put a stop to any further borrowing “In a detailed interview with Kenyan media outlets, Ruto added. The government, he said, planned to acquire an extra 1 trillion shillings ($8.11 billion) in taxes in the next 24 months, and reiterated plans to cut 300 billion shillings in borrowing in the current fiscal year that runs until the end of June.
Angolan oil firm Sonangol to keep stakes in Galp, Millennium bcp Like other frontier economies, Kenya found it almost impossible to raise funds from international bond markets in 2022 due to a surge in yields. In June it was forced to cancel the planned issuance of a Eurobond and is seeking alternative sources of funding.
In February last year, Fitch said rising government debt levels and global interest rates were increasing the risk of credit rating downgrades in as many as 10 African countries, with Kenya, Ghana, Lesotho, Namibia, Rwanda and Uganda most at threat.