From All Africa: The International Monetary Fund is satisfied with Kenya’s debt levels and does not see the country exposed to risk of external debt distress.

According to the fund’s latest debt sustainability assessment for Kenya covering upto 2012, Kenya’s total public debt dynamics have improved compared to the previous year as a result of significant fiscal consolidation and prudent external borrowing as well as a strengthened macroeconomic environment.

“Since the last analysis published in December 2011, Kenya’s debt outlook has strengthened,” says the assessment released late last week.

“Despite weaker than projected economic growth, all debt indicators have improved as a result of lower fiscal and current account deficits in 2011 and 2012, and more favorable exchange rate developments.”

As at end 2012, the ratio of public debt to GDP stood at 43 per cent, down from 48 per cent at end-2011. “Overall public debt is almost evenly split between domestic and external creditors,” said the assessment released late last week.

Read more at allafrica.com