Kenya Faces Rising Borrowing Costs

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Moody’s Ratings reported rising borrowing costs in Kenya, Nigeria, and South Africa over the past five years. Weak economic policies, inflation, and shallow capital markets drove the increase. Funding from international partners, such as the IMF, eased some foreign debt pressures. Interest rates remain high, and in Kenya, government borrowing costs are around 5% above U.S. Treasury rates. Moody’s reported that heavy debt and limited markets are constraining credit, investment, and growth.