In the first half of 2021, Kenya enjoyed goodwill from rich nations under the G20 debt suspension initiative. For the period between January and June, Kenya obtained a debt suspension of $425 million (Sh48.06 billion) from the rich nations.
Some rich countries snubbed a second-round debt relief request by Kenya, turning pressure on the Treasury to find alternative sources of cash to fund growth.
Documents by the Treasury showed that a second phase $379 million (Sh48.86 billion) debt service suspension request by Kenya was ignored by some bilateral lenders — leaving the country in a tight spot of having to fully service its dues in an economic environment heavily weighed down by the shocks of Covid-19.
