Experts project public debt to hit Sh7 trillion by 2022

Consumers Federation of Kenya has projected the rise of public debt to about sh 7 trillion by 2022.

On the tweeter account, The federation was reacting to news that the Jubilee government has sold out $210 billion 3rd Euro board to surface the external loans due to mature on June 2019.

Kenyan treasury officials quietly flew out to Europe and the United States to drum up support for a new $2.5 billion Eurobond—the country’s third in five years.

Related image

Reuters news agency reported that JP Morgan and Standard Chartered Bank have been appointed lead arrangers and that the Eurobond that will be listed on both the Irish and London stock exchanges.

Kenya is in dire need of cash to finance its budget and pay off maturing loans, including a $750 million Eurobond priced at 5.875 percent that is due for payment this June.

Public debt has risen to close to 60 percent of national output, up from below 40 percent in 2013, as Kenya has borrowed heavily from China to fund a $4.8bn railway scheme, the country’s largest infrastructure project since its independence from Britain in 1963.



Leave a Reply

Your email address will not be published. Required fields are marked *