Kenya to Secure Additional Loans from IMF and Other Lenders to Repay KSh 298b Eurobond

Nairobi, Kenya | THE BLACK EXAMINER | Kenya is poised to seek additional international loans to retire a $2 billion (KSh 298.5 billion) Eurobond set to mature in June 2024 The Black Examiner has learned. President William Ruto’s efforts to curb the government’s borrowing appetite have fallen short, as he continues on a borrowing spree.

The nation is in discussions with institutions such as the International Monetary Fund (IMF) and the World Bank for financial support. Kenya’s dialogue with these Bretton Woods institutions was revealed by IMF’s deputy director for Africa, Catherine Pattillo.

The country aims to repurchase a quarter of its Eurobond before the end of 2023 and has negotiated with the Trade & Development Bank and the African Export-Import Bank for commercial loans ranging from $500 million (KSh 74.6 billion) to $1 billion (KSh 149.3 billion).

Kenya initially secured the Eurobond on February 22, 2018, amid concerns from the public about the growing national debt. This form of bond was issued in a foreign currency, the U.S. dollar, and the country faces increasing loan obligations due to a depreciating shilling.

As the Central Bank of Kenya quoted the shilling at 149.1324 against the dollar on October 13, the country must spend more shillings to acquire an appreciating dollar for loan repayments, explained FX Pesa lead market analyst Rufas Kamau.

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