Kenya's government is seeking a KSh 250 billion Eurobond and a KSh 37 billion syndicated loan to address maturing obligations, as public debt reaches KSh 5.4 trillion. The National Treasury stated the borrowing aligns with its foreign debt strategy, aiming to reduce the 2020 fiscal burden by settling KSh 251 billion in debts due in June 2019.
The move comes amid concerns over the country's debt trajectory, which has grown from KSh 1.8 trillion in 2013 to KSh 5.4 trillion by February 2019. Treasury Principal Secretary Kamau Thugge emphasized that the 2019 debt settlements would ease pressures in 2020, though projections indicate public debt could surpass KSh 7 trillion by June 2022.
The government's borrowing plan includes KSh 250 billion in Eurobonds maturing in 2024, alongside the syndicated loan. This follows a 2019 target of KSh 600 billion in total borrowing, reflecting ongoing fiscal challenges linked to unmet revenue collection goals.
