Kenya Today

Kenya News, analysis & in-depth reports

  • Home
  • News
  • Politics
    • Raila Odinga
    • Uhuru Kenyatta
  • Facing Justice
  • Global
  • Opinion
  • Live TV
Tough times ahead as Uhuru takes third Eurobond worth Ksh. 210 billion

Tough times ahead as Uhuru takes third Eurobond worth Ksh. 210 billion

May 16, 2019 Leave a Comment

The Jubilee government is on it again, this time with disturbing news of the sale of $2bn of Eurobonds, partly to repay a $750bn due to mature in June.

This has raised questions about the govt’s ability to service its mounting debt burden. Public debt has risen to nearly 60% of national output, up from below 40% in 2013.

Kenya sells third Sh210bn Eurobond https://t.co/EXGgFMHswy

— Daily Nation (@dailynation) May 16, 2019

Kenya has borrowed heavily from China to fund a $4.8bn railway scheme, the country’s largest infrastructure project since its independence from Britain in 1963.
As a result, Kenya’s debt servicing costs will consume one-third of the government’s revenues this year, according to the Nairobi-based Institute of Economic Affairs. That is one of the highest ratios in sub-Saharan Africa.

According to Financial Times, Kenya is expected to sell seven-year and 12-year bonds — its third such issuance in five years. It has dropped plans to issue a 31-year tranche it had earlier marketed.
The Kenyan treasury, which said on Wednesday it had orders of at least $6bn, indicated that the seven-year bond was likely to be priced at about 7.25 percent and the 12-year paper at 8.25 percent.

The latter is a step up from the 7.25 percent coupon that a 10-year Kenyan bond carried when the country last came to the market in February 2018, according to Kevin Daly, emerging market bond fund manager at Aberdeen Standard Investments.

After this Eurobond thingy am now convinced that very soon we shall not have control over the Mombasa port or JKIA. Watch this space

— Denogrant (@Denogrant_) May 16, 2019

Filed Under: News Tagged With: Uhuru Kenyatta

Leave a Reply Cancel reply

Your email address will not be published.

Latest posts

Basic needs of a parliamentary aspirant in Kenya ahead of 2022 election

Analyst: Hon. Wetangula to beat DP Ruto in Kabuchai parliamentary by-election

ABSA bank sacks over 100 employees, expected to kick out 150 more to cut cost

I will defeat Raila and Ruto combined- Hon Mudavadi vows

Murathe warns DP Ruto ahead of his Muranga tour tomorrow

Bluebird Aviation reports rise in emergency medical evacuation

Disclaimer

Privacy and cookies

Copyright @ 2021 | Kenya Today