Economy in crisis: World Bank warns of debt distress

Customers shop at a supermarket in Nairobi. The ratio of Kenya’s debt to GDP has shot up from 59.1 per cent in 2017/18 to 62.3 per cent in 2018/19, racing towards dangerous levels. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • Mr Yattani said the government would run broke and would be unable to finance this year’s Sh3.02 trillion budget if Senate blocked an increase of Kenya’s debt ceiling to Sh9 trillion.
  • A default on loan repayment would expose the country to ridicule in the international financial markets.

Kenya’s failure to fulfil its commitment to live within its means could make it difficult to repay its debts when they mature, the World Bank has warned.

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