The Kenyan government has revealed plans to acquire a third Eurobond worth Sh250 billion.
National Treasury Principal Secretary Kamau Thugge says the funds will aid in paying off previous loans.
Kamau also says the borrowing is in line with Kenya’s foreign borrowing plans for the current financial year to meet the budget deficit.
He says the government is mainly targeting investors from Europe and the United States.
In addition, the government is also seeking to borrow another Sh37 billion in syndicated loans from a consortium of international banks.
PS Kamau reveals that Sh251 billion of the nee debt will be used to service a loan that falls due in June 2019.
Speaking to the Daily Nation, Kamau also says Kenyatta’s administration will borrow Sh317 billion from the domestic market.
“We want to pay our debts in this financial year and this will reduce our debt service burden for next year,” he says.
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 2018.
Kenya’s total public debt currently stands at over Sh5 trillion and is expected to hit Sh7 trillion by the time President Kenyatta exits office in 2022.
Is this economics made easy…
Is this economics made easy or it is mwakilishi losing us in translation or interpretation?
“Sh251 billion of the nee debt will be used to service a loan that falls due in June 2019.”
“borrowing is in line with Kenya’s foreign borrowing plans for the current financial year to meet the budget deficit”
“stands at over Sh5 trillion and is expected to hit Sh7 trillion by the time President Kenyatta exits office in 2022”
Can those versed in these matters help interpret what is being said here?
The Targeted US Investors…
The Targeted US Investors will know that the money is to be used to repay other loans so the interest will be very steep. We all know how this story ends. Looks like the so called investments that the boy in state house is always talking about are not working. That happens when you get a loan but instead of investing you spend it on Tusker. Pombe kila siku!
Kenyatta’s economics is not…
Kenyatta’s economics is not working! Borrowing to pay debt people will die in the country, wait and see. They are increasing debt by S 2 trillion in the next 2 years, so their plan is to borrow to pay debt in those years, they are not planning to correct revenue from railway project to pay the loan, they are not planning to reduce crude oil import and refine the Kenyan owned and supply within the country Export to Uganda instead they are giving land to Uganda to do business in Kenya. I am disappointed the way Kenyatta is busy borrowing for projects and borrowing to pay debt while money is being pocketed by his own team. Kenyans should stand up and say NO, enough is enough. Why are people starving if these loans are meant to help them. I think Kenya doesn’t need these loans, period.
Our government is in a…
Our government is in a frenzy! We’re borrowing frm China,U.S.A & Europe & there’re no clear structures to make sure the loans will be serviced appropriately! This is a sure sign that we’re fast falling apart unless someone stops the flying boy scout in state house from his madness!