The Kenyan government has divulged its plans to acquire a third Eurobond to aid in paying off its previous loans.
Speaking on this plan, Treasury Principal Secretary Kamau Thugge noted that the borrowing is in line with the government foreign borrowing plans for the current financial year to meet the budget deficit.
According to Thugge, the government aims at raising Ksh608 billion, with its target investors being Europe and the United States.
In addition to that, the Uhuru-led administration also seeks to take another Ksh37 billion from a consortium of international banks as a syndicated loan.
Thugge further exclaimed that if they acquire the Eurobond as planned, part of the money will be used to pay off the Ksh251 billion debt due in June.
Part of this debt will be the first installment of Sh75 billion for the inaugural Eurobond taken in 2014.
Speaking to Daily Nation, Thugge stated that Besides the Sh287 billion from the Eurobond and syndicated loans, it will also borrow Sh317 billion from the domestic market.
“We want to pay our debts in this financial year and this will reduce our debt service burden for next year,” the PS exclaimed.
He further added that the next Eurobond installment will fall due in 2024.
The treasury’s plan comes at a time when reports of missing billions have marred the country, with senior government officials being implicated of committing economic crimes.
It is important to note that to date, the government is yet to release a list of the projects funded by the controversial 2014 Eurobond that raised Ksh280billion.
Daily Nation has also revealed that the Auditor General Edward Ouko has finalized a report that sources claim will have the details of the previous Eurobond that were not previously released to the public.
Mr Ouko is noted to have sent a team to New York to investigate the Eurobond, and his findings are expected to bring to an end five years of controversy on the loan.