How Kenya’s Debt Service Obligations Climbed to $12 Billion
- Government increased borrowing to develop infrastructure
- Coronavirus pandemic battered the economy, hit revenue
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Kenya is poised to spend a record amount of money on servicing its liabilities, hampering the government’s efforts to ease the debt burden while still sustaining economic growth.
The East African nation’s debt-servicing costs will climb to 1.39 trillion shillings ($12.1 billion) in the year starting July 1, according to budget documents presented to lawmakers on Thursday. That’s 21% more than the estimated cost in the current fiscal year.