First Eurobond debt repayment to cost more than Sh97.7bn – Finance – kenyagist

Repayments to the first Eurobond will cost taxpayers more than Sh97.71 billion in the financial year starting next month.

Treasury has set aside Sh78.303 billion to clear the first Sh75 billion portion of the debut Eurobond and a further Sh19.41 billion towards interest servicing of the entire facility.

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The National Treasury (Courtesy)

Kenya borrowed Sh202 billion from international investors in June 2014 and a further Sh75 billion in December that year under a transaction known as tap sale.

Repayments towards external debt are projected at Sh364.66 billion in the year which ends June 2019 from Sh240.10 billion in current year, a growth of Sh124.56 billion.

Foreign debt

Statistics from the Central Bank of Kenya indicate that more than half of the country’s Sh4.88 trillion total public debt in March was foreign (Sh2.51 trillion).

President Kenyatta’s administration has heavily relied on external debt to spur infrastructure development in the country.

This despite calls by Central Bank to cut on external borrowing and shift focus on Public-Private Partnership (PPP) and non-debt models for the financing of projects.