ASSESSMENTS

Kenya's Next President Will Inherit an Unsustainable Debt Burden

Apr 11, 2022 | 20:10 GMT

A construction worker adds gravel to the tracks of a section of the new Standard Gauge Railway (SGR) in Nairobi, Kenya, in June 2018.

A construction worker adds gravel to the tracks of a section of the new Standard Gauge Railway (SGR) in Nairobi, Kenya, in June 2018.

(YASUYOSHI CHIBA/AFP via Getty Images)

The winner of Kenya's upcoming presidential election will inherit an increasingly unsustainable debt burden, with repayments slated to overtake the national government's recurrent spending programs beginning in July. Kenya will hold general elections on Aug. 9 in which voters will cast ballots for the country's president and national legislature, along with various regional positions. The presidential race, in particular, is expected to be highly contentious and could hold significant repercussions for Kenya's financial outlook, as massive infrastructure projects continue to drive the government deeper into debt (which now totals an estimated $71 billion, or 70.2% of Kenya's GDP). Kenyan President Uhuru Kenyatta's government has increased borrowing to build his ambitious ''legacy projects,'' which include the Standard Gauge Railway, the Nairobi Expressway and the Lamu port. In funding these infrastructure projects, which are estimated to cost a total of $47.8 billion, Kenyatta's government has relied on Eurobond offerings, a package of...

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