Kenya is at rising risk of default, with growing concerns as investors demand extra yield to hold its USD bonds over US treasuries. Yields on its USD bonds due 2028 have increased for fourteen consecutive days, and the Kenyan shilling has dropped over 3% in the past month. The country’s principal payment of USD 2 bln is due next year, while its FX reserves remain at about USD 6.3 bln. The government hopes to refinance its 2024 payment with new debt, but borrowing remains challenging for its junk-rated credit. The shilling has depreciated 9.7% against the USD this year, trading at a record low.