Kenya Averts Default But Debt Burden Remains High

• Kenya's debt to GDP ratio has risen to 68% and a large portion of tax revenue goes toward interest payments • The tight global financial market had made it difficult for Kenya to repay its maturing $2 billion Eurobond • To raise funds, the Ruto administration introduced painful tax measures leading to public frustration • Kenya was finally able to issue a new Eurobond this week to repay the maturing one, but at high interest rates • While default was averted for now, analysts warn Kenya's debt risks remain high and relief could be short-lived