NAIROBI Aug 25 Kenya's debut $2 billion
Eurobond pushed its total public debt to 57 percent of gross
domestic product (GDP) at the end of June, up from 51.7 percent
a year earlier, the Treasury said.
The east African nation's total debt stood at 2.37 trillion
shillings (26.78 billion US dollar) after Kenya's maiden
sovereign bond was issued in June, according to data from the
finance ministry seen by Reuters on Monday.
Analysts said the higher level of debt was sustainable
because the government had negotiated low interest rates with
multilateral lenders like the World Bank.
"The new level should be sustainable in terms of debt
repayment because most of it is booked on concessionary terms,"
said Alex Muiruri, a fixed-income trader at Kestrel Capital.
A weaker shilling contributed to the upswing in debt as
foreign loans denominated in major currencies like the dollar
usually go up when the shilling weakens.
The shilling is trading above 88.00 per dollar,
having weakened from 87.50 in the same period last year.
Debt as a percentage of GDP is expected to fall in late
September when the statistics office updates the base year for
calculating output to 2009, which will result in the size of the
economy going up.
(1 US dollar = 88.5000 Kenyan shilling)
(Reporting by Duncan Miriri; Editing by Drazen Jorgic and Tom