Kenya Has Room to Refinance Government Debt, Central Banker Says

Kenya has room to refinance its debt by extending the tenure of some of its loans, the central bank governor said on Tuesday, but it faces growing risks from an unsteady global economy, Reuters reported. Slowdowns in Europe and China, uncertainty over Brexit, a U.S.-China trade war and the recent U.S. government shutdown have all contributed to fears of a crisis in the global economy, Patrick Njoroge told a news conference. “Clearly, the global economy is without a rudder,” Njoroge said. “It’s just coasting and without direction. That is very dangerous.” The Kenyan government’s debt stood at 56.5 percent of gross domestic product in September, Njoroge said, and “there is scope for the reorganization of the debt portfolio, including replacing more expensive debt with cheaper debt.” However, debt was just 42 percent of GDP when President Uhuru Kenyatta came to power in 2013. His government has borrowed heavily to finance infrastructure projects. Read more