Hopes for a fall in interest rate fade as Kenya borrowing rises

Kenya’s domestic borrowing appetite that will see it pay $3.69 billion in redemptions and interest in the new financial year spells doom for the hopes of a fall in interest rates, as financial institutions who consider government debt risk-free continue to show appetite.

In the budget summary paper submitted to parliament, Kenya is looking at repaying more than $1.72 billion in debt redemption and $1.97 billion in interest on its domestic debt even as it increases its deficit financing target to $6.8 billion.