Kenya better placed to avoid default, for now

One of the big questions in Kenya in 2024 is whether the government can meet a $2bn Eurobond repayment due in the middle of the year. An improving balance of payments position, alongside an enhanced IMF deal and other external financing, mean that it looks increasingly likely that Kenya will avoid following the likes of Zambia, Ghana and Ethiopia down the path of default this year. Further out, though, the key will be for the Ruto administration to sustain its fiscal consolidation efforts.