Kenya mulls refinancing commercial debt with cheaper options

Kenya plans to refinance or substitute commercial loans with cheaper options from friendly nations or development financiers, according to acting finance Cabinet Secretary Ukur Yatani.

“I also intend to restructure debt stocks by refinancing or substituting commercial elements with concessionary ones,” Ukur Yatani.

Kenya wants to avoid going to capital markets abroad using instruments such as dollar bonds, after a binge of borrowing in recent years including Eurobond offerings, a package of Chinese loans and syndicated commercial loans.

The government was committed to putting the debt, which has risen to above 62% of gross domestic product, on a more sustainable footing.