This archive report was first published on 2 September 2019.
Kenya's Treasury has taken a significant step towards increasing transparency in the country's public finances by setting up a web portal that will disclose details of the country's debt position.
The investor relations page, which is similar to those used by listed companies, will provide information on Kenya's debt holders, laws on public debt, debt calendar, and monthly reports on the country's indebtedness.
The move is aimed at enhancing predictability in the issuance and trading of Treasury bills and bonds, and follows a push by the World Bank for more disclosures since Kenya entered the Eurobond market.
According to Treasury sources, the World Bank has been advocating for more transparency to keep international investors informed about the country's economic situation.
Kenya has borrowed almost Sh10 trillion in commercial loans from international lenders since President Mwai Kibaki's 2011 debut four-year Eurobond, but details of these debts have been kept secret, including their repayment terms.
Former Finance Secretary Henry Rotich had announced plans to introduce an investor relations unit during his Budget speech in June, which would provide prospectus-level detail to the public eye.
The new web portal will provide information on issuances, buybacks, outstanding debt, and its average maturity and life, maturity profiles, and average costs for the debts, including domestic and external debt.
PFM rules on manageable debt levels, as well as the debt management strategies, will be referenced on the website.
The Treasury has been playing cat and mouse with the public, offering different figures for different occasions, as noted by Parliament.
Farhiya Ali, the nominated Senator from Wajir County, had raised concerns during a Finance Committee meeting with Treasury in March 2018 that Treasury had so many parameters that MPs no longer had an idea what kind of debt they were dealing with.
Heavily-indebted countries have in the past fudged numbers to camouflage their debts, which only become apparent when their finances capitulate and they seek rescue plans from multilateral lenders who require due diligence.
Mozambique's tuna bonds and Congo's secret loans with China are recent examples.
Published on September 2, 2019, 12:04.
