Kenya is set to receive $447mn from the IMF to help boost its finances and reserves. With this, cumulative disbursements to Kenya under the IMF’s arrangements would amount to $2.4bn. The IMF noted that “downside risks predominate in the near term” and thus the funds will help address debt vulnerabilities, support against global shocks, enhance governance and economic reforms.  Kenya’s international reserves have fallen to $7.2bn as of November 2022 vs. $9.5bn at end-2021. Fitch recently downgraded the nation to B from B+ citing “persistent twin fiscal and external deficits, relatively high debt, and deteriorating external liquidity, and high external financing costs”.

Kenya’s dollar bonds were trading slightly lower by 0.3-0.5 points across the curve with its 2024s-2027s at 89-92 cents on the dollar.

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