This archive report was first published on 7 July 2019.
On May 16, 2019, the Kenyan government announced that it had secured Sh210 billion in a third Eurobond loan, marking the country's third Eurobond issuance since 2014.
The National Treasury made the announcement from London, explaining that the new Eurobond, nicknamed the 'kachumbari' bond, would be used to repay other loans and fund unspecified infrastructure projects.
The kachumbari bond was listed for secondary trading at the London Stock Exchange, with a pricing of 7 per cent for the seven-year tenor and 8 per cent for the 12-year tenor.
A Eurobond is a financing tool issued in foreign currency outside the borders of a borrowing country, and it has become an attractive option for African countries due to its flexibility and accessibility to investors.
The Kenyan government has used Eurobonds to raise funds for various projects, with the first Eurobond issued in 2014 and the second in 2018.
Before issuing a Eurobond, the government typically conducts a roadshow and releases a prospectus, which provides details about the investment offering and helps investors make informed decisions.
However, the prospectus for the latest Eurobond has been kept secret, with the National Treasury refusing to release it despite repeated requests from the media and the public.
The Access to Information Act, 2016, requires public entities to proactively disclose information and provide it on request, but the National Treasury has failed to comply with this requirement.
Parliament is expected to be the public watchdog in matters of debt, but it has often been criticized for failing to act on recommendations from the Auditor-General.
