This archive report was first published on 24 December 2021.
Kenya has informed the International Monetary Fund (IMF) of its intention to issue a new Eurobond before the end of 2021, as part of its efforts to finance the 2021/22 budget.
According to a Memorandum of Economic and Financial Policies (MEFP) signed by Kenya's Treasury CS Ukur Yatani and CBK Governor Dr Patrick Njoroge, the country plans to issue a Eurobond by the end of December 2021 to provide financing for the 2021/22 budget.
The IMF notes that this financing was previously programmed for early 2022 but has been hastened to avoid the risks associated with the upcoming general elections in August 2022.
Kenya also plans to issue another Eurobond by the end of June 2022, subject to favourable market conditions, to repay in full or part the bond maturing in 2024 as part of a debt management operation.
The IMF indicates that Kenya will borrow US$2.19 billion (KSh247 billion) through these two commercial loans.
As part of its debt management strategy, Kenya is expected to continue to rely on concessional development financing, while tapping international financial markets to roll over maturing Eurobonds and optimize the debt service profile.
