NAIROBI, Feb. 16 (Xinhua) -- Kenya's public debt remains at a sustainable level through 2026 though with a high risk of debt distress, the National Treasury said Friday.

The high risk of distress is due to global shocks like the Russia-Ukraine conflict, which have slowed down economic growth, the Treasury said in its 2024 Budget Policy Statement released in Nairobi, the capital of Kenya.

"Under external debt sustainability analysis, the present value of the external debt to GDP ratio remains sustainable through 2026," it said.

The Treasury, however, noted that the external debt-to-export and debt service-to-export ratios breach the sustainability thresholds even in the medium term due to subdued growth in exports.

The ratios, it said, are expected to improve with Kenya's economic recovery, boosting the export sector and improving external public debt sustainability ratios.

Kenya's economy is projected by the International Monetary Fund to grow by an average of 5 percent in 2024.

The Treasury said Kenya's debt service-to-revenue ratio in 2024 has been worsened by the maturity of a 2-billion-U.S.-dollar Eurobond in June.

Kenya on Wednesday raised 1.5 billion dollars from the international debt market to repay the debt, eliminating fears of default.

The country's public debt currently stands at 73.1 billion dollars, with 51 percent of it being external debt.

To reduce debt variability and make it sustainable, the Treasury said, Kenya would rely on concessional borrowing to finance capital investments.

It added that a steady and strong inflow of remittances and a favorable outlook for exports will play a major role in supporting external debt sustainability.