Kenya avoids default and stabilises the shilling

In early 2024, international markets were openly pricing a Kenyan default. A $2 billion Eurobond was maturing in June and the consensus was that Kenya could not pay it.

• The government executed a buyback and refinancing of the 2024 Eurobond months ahead of maturity, retiring the majority of it early.
• Default speculation collapsed and Kenya's credit outlook was revised upward.
• The shilling recovered from a low of about Sh162 to roughly Sh129 to the dollar, making it one of the best-performing currencies in the world that year.

A stronger shilling lowered the cost of imported fuel, food and raw materials, and cut the shilling cost of servicing external debt.