Kenya is back in the international debt markets. According to a Reuters, the National Treasury is seeking a third Eurobond worth $2.5 billion. The treasury is yet to decide whether to borrow a euro-denominated or a dollar-denominated Eurobond.
In the 2018/2019 budget, the National Treasury said it will finance $2.83 billion of its budget deficit through external borrowing.
An unnamed source told Reuters that, “(National Treasury) want to assess whether it would be cheaper to borrow in Euros or Dollars.”
Kenya’s debt has grown to surpass Ksh5 trillion as at June 2018. Some economists have raised concern over the country’s ability to meet its increasing debt obligations.
In February 2018, the Kenyan Govtraised $2 billion (Sh 200B) in a dollar-denominated Eurobond sale which was split equally between 10- and 30-year tranches. The country’s finance ministry of Treasury announced then that it had received bids worth US$14 billion against a target of US$2 Billion.
