Kenya Surprises Global Markets with Early Ksh218B Eurobond Repayment
On Wednesday, February 21, President William Ruto declared that his government had completed a payment of $1.5 billion (equivalent to Ksh218 billion) as a component of a $2 billion Eurobond loan.
Ruto, speaking during a press briefing in Naivasha, Nakuru County, remarked that the payment was made four months before maturity to alleviate the concerns of foreign investors.
He lauded the payment as a milestone for Kenya at a time when most developing countries were finding it difficult to settle their international debt obligations.
“Yesterday marked a significant financial milestone for Kenya as we successfully settled the buy-back of a substantial part of the USD2 billion 2014 Eurobonds that were scheduled to mature on 24th June 2024,” Ruto briefed the nation.
He stated that the funds utilized to cover a portion of the Eurobond were generated on February 12, after the issuance of a comparable bond by the country.
Ruto declared that the decision had instilled confidence in foreign investors, highlighting the adeptness of his administration in economic management strategies.
He further indicated that Kenya had come out of the situation as a nation that had sound debt management.
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“I can now confidently say, Kenya is no longer on the list of countries that run the risk of debt default,” the Head of State remarked.
The statement by Ruto came a day after the Deputy Auditor General, Joyce Ndung’u cast aspersions on Kenya’s overreliance on taking loans to repay debts.
Ndung’u, while appearing before the Public Debt and Privatization Committee in Parliament, remarked that it was not sustainable for Kenya to depend on Eurobond to settle existing loans.
The President has been borrowing heavily since assuming office in September 2022 to settle debts incurred by the previous administration.
According to the Quarterly Economic and Budgetary Review released by the National Treasury, Ruto’s administration had to make payments to the tune of Ksh104 billion for the first half of the 2023/2024 Financial Year.
This was about interest rates and principal amounts that were borrowed by former President Uhuru Kenyatta’s administration.
Kenya Surprises Global Markets with Early Ksh218B Eurobond Repayment