This archive report was first published on 17 November 2021.
President Uhuru Kenyatta's government is set to issue a fifth eurobond, aiming to raise Sh. 106 billion. This comes a year after Kenya secured Sh. 112 billion from the fourth eurobond issued in June 2020.
As of now, the government has netted a total of Sh. 880 billion ($7.85 billion) from eurobond loans. The fifth eurobond will bring this total close to Sh. 1 trillion under President Uhuru's watch.
According to the 2022 Budget Policy Statement, the National Treasury plans to issue green bonds to cover the Sh. 363 billion financing deficit in the 2022/2023 fiscal year.
As part of its climate agenda, the government aims to tap into green financing by issuing the first Sovereign Green Bond to finance green and climate-related projects and programmes.
The funds raised from green bonds will be used for projects such as electrified bus rapid transport systems, cycling lanes, geothermal, wind and solar power farms, and improving water supply and waste management in the country.
The first green bond in Kenya was issued in the private sector by student housing developer Acorn Group and PE fund Helios in October 2019, raising Sh. 4.3 billion of a targeted Sh. 5 billion.
