Ruto’s Borrowing Spree Contradicts Promise to Not Take Loans for Struggling Civil Servants
President William Ruto has resorted to borrowing money due to a severe cash shortage that is nearly paralyzing the government.
Ruto, through the Treasury, issued a notice announcing his return to the international market to raise funds to meet his financial obligations.
Treasury announced its intention to issue international sovereign bonds to raise funds.
A sovereign bond is a debt security issued by a government to finance state programs, retire old debt, pay interest on current debt, and cover any other public expenditure requirements.
In contrast to his predecessor Uhuru Kenyatta, Ruto sought out a financial institution to negotiate on his administration’s behalf.
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“The Government of the Republic of Kenya, through the National Treasury, is considering issuing a sovereign bond on the international capital markets before the end of the fiscal year 2023/24 (1 July 2023 to 30 June 2024).
“The National Treasury request for Expressions of Interest (Eol) from reputable financial institutions to provide comprehensive Lead Manager services to successfully accompany Kenya’s return to international capital markets,” stated the Treasury.
The government requires the Lead Manager to hold an operating license in North America, Europe, the Middle East, or Asia.
The Lead Manager advises the National Treasury on international bond timing, format, amount, tenor, coupon, all-in-cost, and other terms.
The Lead Manager will also interact with potential investors, manage the offering’s book-building, and draft legal documents.
Ruto’s Borrowing Spree Contradicts Promise to Not Take Loans for Struggling Civil Servants
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