The Kenyan government on Thursday December 28 paid $68.7 million (Sh10.8 billion) in interest of the $2 billion (Sh313bn) Eurobond.
In a statement, Treasury CS Njuguna Ndungu said Kenya is dedicated to fulfilling all debt obligations with international lenders.
“Recently, Kenya successfully executed a payment of US$68.7 million (equivalent to Kshs 10.8 billion) in interest, a necessary installment on the US$2 billion Eurobond.
“This financial commitment, achieved through prudent use of revenue collections, underscores Kenya’s steadfast dedication to meeting external obligations,” the statement read in part.
CS Ndung’u noted that the final interest payment on the Eurobond is scheduled for the last week of June 2024, alongside the repayment of the principal amount of US$2 billion.
“Since July 2023, the government has diligently implemented a comprehensive plan for debt service payments, combining revenue and concessional financing to retire high-cost debts within the national debt portfolio,” he stated.
Treasury CS Njuguna Ndung’u
Substantial external inflows from the World Bank, IMF, and other Development Finance Institutions, in addition to key bilateral partners, are anticipated between January and March 2024. These inflows are poised to significantly bolster foreign exchange reserve levels.
Additionally, after a slow start in revenue collection at the fiscal year’s commencement, the preliminary outcome for the six months ending December reflects an impressive turnaround.
“Kenya maintains a robust economic outlook supported by policy reforms and collaborations with multilateral and bilateral development partners.
“The ongoing fiscal consolidation plan, driven by revenue generation, aims to curtail borrowing, reduce debt levels over the medium term, and ultimately enhance the well-being of Kenyans,” CS Njuguna added.
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