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KK economics: Trading cheaper for expensive debt

The Kenyan shilling posted its strongest intra-day gain against the US dollar in 12 years on February 14.

Photo credit: Shutterstock

What you need to know:

  • The regime will say they inherited this problem. That may well be so. But the solution is of their own making. Had Kenya’s credit rating been improving, the pricing would have been lower. Had the regime tamed its expenditure appetite, the borrowing would have been less or avoided altogether.