President William Ruto on Wednesday announced that the Kenyan government has paid part of the 2 billion dollars 2014 Eurobbond that was scheduled to mature on 24th June 2024.
Speaking in Naivasha, Nakuru county, Ruto said the government on Tuesday paid 1.5 billion dollars that it raised on February 12.
“The successful execution of both the buy-back and the new bond issue demonstrates strong investor confidence in Kenya through the international capital markets, and a vote of confidence in the government’s overall economic management, particularly our public debt management strategy,” said Ruto.
The Head of State disclosed that Kenya received interest on its recent Eurobond worth an overwhelming $6.2 billion(Sh985 billion) but the government chose $1.5 billion.
“The amount we received as people interested in our Eurobond is not Sh1.4 billion dollars but it is 6.2 billion dollars, but we chose 1.5 billion dollars,’’ Ruto said.
He went on to say his administration has pursued a turnaround strategy focused on increasing tax revenues and reducing both spending and the rate of debt accumulation.
“Throughout this process, we have been guided by the principles and values of equity, fairness, and prudence in public spending without sacrificing priority social and development funding,” Ruto stated.
The President further said the commitment to sound debt management strategy, fiscal and general economic management policies, and tightening monetary policy by the Central Bank of Kenya has resulted in the appreciation of the shilling against the US dollar, from KSh 162 to KSh 142.
“This has reduced our overall debt by KShs 722 billion, and also reduced our debt service costs by KShs 195 billion over the next 6 years, saving the country a total of KShs 917 billion,” President Ruto added.
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