Kenya’s foreign exchange reserves dropped by 44 billion Shillings to 886 billion Shillings ($7.38 billion) on debt repayments in August 2022, Business Daily newspaper reported.

The East African nation paid 13.2 billion Shillings to the Trade and Development Bank, while semi-annual interest payments for Eurobond issued in February 2018 were 9.3 billion Shillings.

Payments to the World Bank’s International Development Association stood at 5.9 billion Shillings during the month.

Kenya’s reserves have declined due to lower external borrowing amid rising interest rates and falling remittances.

The country spends significant amounts on the import of goods, which are becoming costlier as its currency weakens against the US dollar.

The newspaper said the government recently cancelled a $1 billion Eurobond issuance and put plans on hold to raise a similar amount through a syndicated loan due to high interest rates.

(Editing by Cleofe Maceda;