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Vol 61 No 21

Published 22nd October 2020


Kenya

A DIY debt trap

The government has turned down debt deferral and plans to increase borrowing, prompting growing doubts about its judgement

President Uhuru Kenyatta's government insists it will not take advantage of the Debt Service Suspension Initiative (DSSI) offered by the Group of 20 wealthy nations to mitigate the effects of Covid-19. It has thus foregone postponement of an estimated US$900 million in external debt repayment, which could have been used to close a growing fiscal deficit and ease pressure on the declining Kenyan shilling.

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