According to the World Bank Group, Kenya would be removed off the list of nations with a high risk of loan default in 2028 provided the authorities stick to a plan targeted at reducing government spending and increasing taxes.
According to the multilateral lender, the country’s debt risk profile will improve in the next years as a result of predicted improvements in economic growth and exports, aided by a fiscal austerity program and policy reforms.
When a country’s debt carrying capacity is stretched but it is not immediately encountering repayment issues, it is considered high risk.
In their latest Debt Sustainability Analysis (DSA) assessment released in April, the World Bank and the International Monetary Fund (IMF) confirmed Kenya’s status as a country at high risk of debt crisis.
After the adoption of Covid-19 control measures, which harmed economic activity, lowered tax collections, curtailed exports, and delayed the fiscal consolidation program, Kenya’s debt distress profile rose to high from moderate in May last year.
According to the multilateral lender, the country’s debt risk profile will improve in the next years as a result of predicted improvements in economic growth and exports, aided by a fiscal austerity program and policy reforms.
When a country’s debt carrying capacity is stretched but it is not immediately encountering repayment issues, it is considered high risk.
In their latest Debt Sustainability Analysis (DSA) assessment released in April, the World Bank and the International Monetary Fund (IMF) confirmed Kenya’s status as a country at high risk of debt crisis.
After the adoption of Covid-19 control measures, which harmed economic activity, lowered tax collections, curtailed exports, and delayed the fiscal consolidation program, Kenya’s debt distress profile rose to high from moderate in May last year.
