Kenya’s outstanding sovereign debts, or Eurobonds, will cost the country more than Sh1 trillion to pay off due to the sharp depreciation of the Kenyan shilling since the securities were issued.
Kenya’s outstanding Eurobonds at issuance were valued at Sh697.7 billion, but due to the depreciation of the local currency alone, they have since increased to Sh1.117 trillion, according to an analysis of the debt trend.
This mimics the dangers associated with taking on foreign debt, which exposes the nation to refinancing risks when the obligations mature.
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