Diamond Trust Bank Predicts Easing of Kenya’s Debt Concerns to Lift Confidence in 2024
Kenya’s issuance of a Eurobond is likely to ease concerns about the debt situation and lift the overall outlook for the country, Diamond Trust Bank (DTB) has said.
The new $1.5 billion bond, which attracted demand of more than $6 billion, is likely to have a positive effect on the exchange rate, inflation, interest rates and the level of government spending in the payment of debts and on development.
Speaking at DTB’s Economic and Sustainability Forum, the bank’s Group CEO and Managing Director Nasim Devji said the real recovery will be felt more in the second half of the year, and the economy to grow by 5.6 per cent.
“In 2024, we are more optimistic that the economic landscape will continue to evolve more favorably, and signs are already evident that we are turning around. Investor sentiment has reversed remarkably. I believe the glass is more than half-full.,” said Ms Devji.
The improvement in the economy is likely to be boosted by a recovery in supply chains as global supply shocks reduce, improved food supply because of the favourable weather, and stability in the foreign exchange rate.
Speakers at the forum themed “Reinvent and build business resilience in the era of economic uncertainty and climate change” said there is renewed optimism in the economy.
Abubakar Hassan, the Principal Secretary for Trade, said: “The Government is relentless in its quest to have strong macroeconomic and trade investment. The oversubscription of the Eurobond demonstrates confidence in the economy and we are happy that we have that done.”
Mr Abubakar said the ministry has a three-pronged strategy: “We are engaging on cost of doing business to see what needs to be reduced, ease of doing business and the harmonisation of county licensing frameworks, which is also supported by the World Bank.”
At the forum, DTB also announced that its Head Office on Mombasa Road, DTB Centre has been certified EDGE-Advanced – Excellence in Design for Greater Efficiencies – a green building certification system developed by the International Finance Corporation. The building received the assessment because of savings of 62 per cent on energy, 30 per cent on water and 99 per cent on less embodied carbon materials used in its construction.
The bank has invested in solar power to meet some of the energy needs of the building and uses energy efficient bulbs and has a waste management system that ensures all paper used is recycled.
