Treasury officials started meeting investors from USA and UK to pitch for two long-term bonds of between 12 and 31 years.
The move is a first step of borrowing from international investors, including the Standard Bank and JP Morgan Chase, an American investment bank.
In 2014, Kenya borrowed two bonds – one matures this year and the other one in 2024. Last year, Kenya took two other loans of 10 and 30 years.
Technocrats will be out to make a case for Kenya, detailing why lending Kenya is good investment. They will also be assuring lenders their money will be safe, especially in the face of China’s anxiety over loans taken to build SGR.
This comes as MPs push to have a say on how much Treasury can borrow.
PS Kamau Thugge is leading the delegation on the Eurobond mission.
Among the proposed spending of the loan is part-settlement of another debt that matures next month. This confirms the vicious cycle where Kenya will keep borrowing to repay lenders.
The first portion of the 2014 Eurobond matures next month and will be repaid from the loan from US and London.
This comes amidst heated debate on Government’s appetite to borrow while the ability to repay decline.
One of the major concerns by Kenyans is what will happen if the country is unable to repay these loans.
