Kenya's Rising Debt Service Ratio Threatens Public Debt Sustainability & Economy
The study looked at how Kenya's debt is affected by the amount of money spent on repaying debt and changes in exchange rates. High debt service ratios and exchange rate depreciation can harm the country's ability to manage its debt. The researchers found that when the debt service ratio is high, it makes it harder for Kenya to sustain its debt level. They also discovered that when the exchange rate drops, it negatively impacts the country's debt sustainability. To keep the debt manageable, the government should keep an eye on the debt service ratio and consider negotiating better borrowing terms. It's also important to maintain exchange rate stability to avoid negative effects on debt sustainability. By diversifying the economy and managing debt wisely, Kenya can improve its ability to repay debts and boost economic growth.