Moody’s, the global rating agency has warned that the Kenya government will continue to face liquidity pressures due to a combination of factors the key one being increased reliance on foreign financing sources in particular commercial external borrowing and short-term domestic debt.  The National Treasury however is has painted a different picture of positivity about the outlook saying it can bear the weight of the burden.

Treasury director general of budget, fiscal and economic affairs Geoffrey Mwau, says the risk of liquidity strain as the country’s loan obligations mature is remote. He added that Treasury is contemplating negotiations with international investors to manage existing obligations effectively.

Under the negotiations, Treasury has options to procure new debt with longer tenure to pay off existing obligations.