This archive report was first published on 1 July 2019.
Published on July 1, 2019, counties in Kenya are exploring alternative funding options to support their development projects. One such option is issuing bonds, which would allow them to raise funds on the stock market.
However, not all counties are eligible to float bonds. According to the latest auditor general's report, only Makueni and Nyandarua counties out of the 47 devolved units received a clean bill of health.
For counties to access additional funds through the capital markets for infrastructure projects, they must demonstrate their ability to repay the bonds. This means they need to clean up their financial accounts and pass a creditworthiness test.
As part of a pilot program, 10 counties have been identified to undergo a creditworthiness assessment. The Commission on Revenue Allocation will oversee this process, ensuring that counties meet the necessary criteria to issue bonds.
