Kenya must curb borrowing to keep debt affordable, IMF says

PHOTO: COURTESY

At the rate Kenya is borrowing to fund its spending, the East African nation could accumulate more debt than it can afford to repay comfortably, according to the International Monetary Fund.

While the nation’s current debt stock is sustainable at 49.8 per cent of gross domestic product, the Treasury has at times struggled with cash management because of maturities coming in very close together, Armando Morales, the IMF’s resident representative in Kenya, said during a lecture on the country’s debt.