- Government targets a 40% reduction in external borrowing for the 2025/26 budget.
- Domestic funding set to increase by 32%, with reforms to attract local investors.
Nairobi, Kenya – Kenya plans to significantly cut foreign borrowing by nearly half from July 2025, focusing instead on the domestic capital market. The move, aimed at reducing exposure to external debt risks, could, however, pressure local bondholders to maintain higher interest rates.
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