The World Bank has issued a warning to African nations regarding their debt management practices, specifically highlighting Kenya's recent Ksh254 billion Eurobond buyback. While Kenya successfully repaid the maturing debt, the World Bank categorised this as a costly 'debt rollover' due to the need for a new loan at a significantly higher interest rate.

• Kenya's Eurobond buyback involved an interest rate approximately 400 basis points higher than the previous financing rate.
• The World Bank's Country Policy and Institutional Assessment report for Sub-Saharan Africa noted that such large maturity payments increase the risk of having to roll over debt in tight credit conditions.
• CS Mbadi led a delegation to IMFWorld Bank Annual Meetings in Washington, October 21, 2024.
• The World Bank also expressed concerns about increasing levels of non-performing loans in Kenya's banking sector, which could erode banks' capital buffers.