Kenya’s central bank announced plans to use reserves to pay off a USD 2 bln debt redemption next year rather than incur new debts, resulting in a fall in the price of Kenya’s Eurobonds. The bank’s governor indicated that borrowing again could be “very expensive,” with rates possibly as high as 13% to 14%. With low FX reserves at USD 7.4 bln and rising energy and food imports, Kenya’s debt burden is a significant concern for investors. On a brighter note, the governor expects inflation to ease in the coming months, thanks to improved weather affecting food prices.