This archive report was first published on 24 October 2019.
On October 24, 2019, the Central Bank of Kenya (CBK) announced the closure of a 16-year Ksh60 billion infrastructure bond, which is expected to mature in 2035.
The bond was issued to finance infrastructural projects for the 2019/20 financial year and was market-determined, with the proceeds listed on the Nairobi Securities Exchange.
However, the government's increasing reliance on domestic debt has raised concerns about debt sustainability, with the World Bank and International Monetary Fund (IMF) warning Kenya about the ballooning debt.
The country's debt-to-GDP ratio has risen to 62 per cent, and analysts believe that many countries in sub-Saharan Africa are at risk of high debt distress due to growing sovereign borrowing.
Notably, the National Assembly revised the debt ceiling, moving the borrowing cap from 50 per cent of GDP to an absolute figure of 9 trillion.
