Paris Club has granted Kenya’s request for a suspension of its debt service.
Through the organisation’s Debt Service Suspension Initiative (DSSI), the Paris Club gave Kenya a 6-month debt relief, in order to use the money made to rebuild the economy.
Kenya is also strongly hit economically by the COVID-19 pandemic as it has faltered in commodity trades and tourism.
“In application of the term sheet of the Debt service suspension Initiative (DSSI) and its addendum also endorsed by the G20, the Paris Club recognized that the Republic of Kenya is eligible to benefit from the initiative. Therefore, the representatives of the Paris Club creditors have accepted to provide to the Republic of Kenya a time-bound suspension of debt service due from 1stJanuary to 30th June 2021,” Paris Club said.
“The Government of the Republic of Kenya is committed to devote the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the COVID19-crisis. The Government of the Republic of Kenya is also committed to seek from all its other bilateral official creditors a debt service treatment that is in line with the agreed term sheet and its addendum. This initiative will also contribute to help the Republic of Kenya to improve debt transparency and debt management.
“Paris Club creditors will continue to closely coordinate with non-Paris Club G20 creditors and other stakeholders in the ongoing implementation of the DSSI, so as to provide maximum support to beneficiary countries.”
Kenya’s debt relief has come barely a week after Angola was granted similar request by the Paris Club.