Kenya Political News, Analysis and Opinions

80pc of Sh202bn Eurobond to repay loans looted Between 2015-2017


Kenya could end up spending more than 80 per cent of the proceeds of last week’s Sh202 billion Eurobond on retiring syndicated loans contracted in 2015 and 2017, the prospectus used to secure the loan shows.

The Treasury took a $1 billion (Sh101 billion) syndicated loan from a consortium of banks in March last year, to mature in April 2019.

It is also due to repay $646 million (Sh66 billion) from the two-year $750 million (Sh76 billion) loan taken in October 2015, whose maturity was extended to next month.

The disclosure by the Treasury shows that the country is now firmly in the cycle of rolling over external debt, essentially using new debt to retire a maturing one.

In October 2017, Kenya took a 10-year $750 million (Sh76 billion) loan from East and South Africa Trade Development Bank (TDB) to refinance the maturing 2015 syndicated loan.

Already, part of this money has been used to pay off investors who did not wish to extend the maturity of their loan to April, totalling $104 million (Sh10.5 billion). Full report, Business Daily

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