The government has announced plans of borrowing $2.8 billion (Sh287 billion) in Eurobonds offers and syndicated loan before the end of 2018 to finance the 2018/2019 budget, Bloomberg reports.
National Treasury Principal Secretary Kamau Thuge says the government is seeking to raise Sh250 billion from Eurobonds and an additional Sh37 billion from commercial debt.
This will become the third Eurobond by the government. Kenya sold the first Eurobond worth Sh275 billion in 2014 before issuing another 10 and 30-year Eurobond worth Sh200 billion in February this year.
Kenya’s total public debt currently stands at over Sh5 trillion and it is expected to hit Sh7 trillion by the time President Kenyatta exits office in 2022.
The International Monetary Fund (IMF) says the high debt level increased the country’s fiscal vulnerabilities and puts Kenya in the top quartile among its peers.
The Washington-based body advises Kenya to refinance debt using concessional loans to extend maturities in the coming year and reduce commercial credit for projects with high economic returns.
“The Eurobond plans could aggravate the negative sentiment on the shilling, coming on the heels of the unfavorable Article IV consultation report by the IMF, which raised concerns about Kenya’s risk of external debt distress,” says Faith Atiti, an economist at Commercial Bank of Africa as quoted by Bloomberg.
“A new Eurobond sale against a backdrop of external debt concerns and rising interest rates in the international debt markets could worsen debt sustainability concerns feeding the recent pressure on the shilling,” she adds.
Hehehe imf/world bank my fut…
Hehehe imf/world bank my fut.They keep warning African countries of countries going dwn yet they r not doing so to usa,australia,uk where we can see their economies keep falling day by day.last year australia n usa credit went dwn from tripple AAA to double AA coz they r not meeting their loans deadlines which they owe to chinese/world bank.How comes they never warned them the way they keep doing it everyday to Us.Wr not fools anymore as Africans,thanx to our gods that we now know different ways to find loans n thumbs up to chinese too.Where was this imf/world bank for the last 50 years????They wanted us to remain poorer n poorest so they can continue to manipulate us?We need loans n we shouldn’t be told by this western controllers whether we need loans or not!!!Warelax n watch the awaken Africa developing.Can this imf/world bank tells us how much usa/uk/Australia owe n write in in big capital letters then we can have a honest discussions.Kenya is unstoppable n wr growing economically day by day.Watch this space haters.Imf Acheni mapropagandas
“Kenya is unstoppable n wr…
“Kenya is unstoppable n wr growing economically day by day” for a Few like UhuRuto, Waiguru, EuroBonders, and NYSwaisters.
Your observation is 100%…
Your observation is 100% accurate. We do not need warning on debt from people unable to manage their own borrowings. They want to hamper Kenya’s development so that they can keep us panhandling from the West. Kenya, borrow and borrow more to grow our nation.
Corruption III.
Corruption III.
PresiDebt Ushuru is at it…
PresiDebt Ushuru is at it again. How about you account for the previous debts? Have we repaid the first one or are just piling debt upon debt?