Kenya: World-beating May rally underpinned by fresh financing but risks remain

  • US$2.1bn of fresh funding from IMF and World Bank help plug Kenya's large external funding needs but gap likely remains

  • CBK has allowed higher rates and more FX flexibility but more is likely needed when new governor takes office in June

  • May eurobond rally (-335bps, +8.5%) means less relative value but still some upside vs B-rated peers; retain Buy on '32s
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