Kenya Risk Management Report: Government acts to avert Eurobond risk as pressures weigh on projects

Risk Management
Issue 501 - 03 Mar 2024 - By Jon Marks | 30 minute read

Risk Grade C↓3↑

A degree of pressure has been lifted from President William Ruto, as his government secured $1.65bn from a dollar eurobond, as well as over $1bn from multilaterals, allowing Nairobi to avert the threat of default on its big repayment due in June.

The shilling has emerged stronger, but the economy remains fragile, while the electricity supply industry is in need of a significantly improved performance.

President Ruto is focused on reducing the cost of electricity and has devised a three-point plan to invest in transmission and distribution, develop LNG import facilities and accelerate geothermal power.

His government may also try to lower end-user tariffs by slowing down the granting of PPAs or putting pressure on the regulator.


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