Economic headwinds will be the biggest challenge for Kenyans in 2024, a report surveying 1,500 global experts has revealed.
In the Global Risks Report 2024 prepared by data risk company, Marsh McLennan, economic downtime was put top of the list followed by public debt burden.
Unemployment, inflation and food supply shortage were also ranked as the challenges to be faced in the year.
Notably, the experts noted that Kenya was not alone even as other countries around the globe face a similar situation. According to the report, most countries are at risk of experiencing a recession in the next two years.
This is majorly attributed to the growing conflicts across the world and climate-related crises that have hampered the economic recovery for most countries after the pandemic.
"Looking back at the events of 2023, plenty of developments captured the attention of people around the world – while others received minimal scrutiny. Vulnerable populations grappled with lethal conflicts, from Sudan to Gaza and Israel, alongside record-breaking heat conditions, drought and flooding.
"As we enter 2024, 2023-2024 Global Risks Perception Survey (GRPS) results highlight a predominantly negative outlook for the world over the next two years that is expected to worsen over the next decade," read the report in part.
Notably, the impacts of some of the challenges highlighted in the report are being witnessed in the country.
For instance, Kenya's outstanding debt for both domestic and foreign currently stands at over Ksh10 trillion with some maturing within the next two years including the USD2 billion Eurobond which matures in June.
President William Ruto has already assured that Kenya will meet its debt obligation before the deadline.
The buyback of the Eurobond is expected to happen between February to March.
However, experts have warned that the country could make tough fiscal decisions to ensure that it repays the debt.
"Kenya’s biggest financial event in 2024 is the June 24 timeline to redeem a US 2 billion Eurobond in a single bullet payment, on top of other debt-servicing commitments. Using a combination of tactics, Kenya will strive to avoid a default and the consequent damage to its reputation and will prioritise a timely Eurobond redemption in 2024.
"The sum is large enough to generate legitimate concern, but not so large as to be unmanageable," the Economist Intelligence Unit (EIU) noted in its Africa Outlook 2024 report.
