3rd Eurobond: While Politicians Are Looting, Treasury Is Set To Borrow 250 Billions

The National Treasury has unveiled plans to raise money by seeking a third Eurobond to repay previous loans.

The government plans to raise Ksh250 Billion to pay a debt of a similar amount that is due in June.

Speaking to a local media house Treasury Principal Secretary Kamau Thugge justified the borrowing as falling in line with the government’s foreign borrowing plans to meet a budget deficit.

“We want to pay our debts in this financial year and this will reduce our debt service burden for next year,” he stated.

while the government is borrowing, kenyans have not forgotten the fact that few tycoons of the country are hiding trillions in foreign countries.

In 2018, Super-rich nefarious Kenyan tycoons were said to be hiding close to Ksh15 trillion in offshore accounts, an amount that can sustain Kenya’s budget for five years.

According to a report that was done by America’s National Bureau of Economic Research (NBER), the tycoons use offshore accounts to hide stolen money, mostly from the government and evade taxes. Now you know why Kenya will be always under debt

Sources of Borrowing.

The government will also approach a consortium of international banks in a bid to raise Ksh37 Billion as a syndicated loan. Part of debt will cater for the 2014 Eurobond valued at Ksh75 Billion and a 2012 syndicated loan of Ksh60 Billion.

The new issue is expected to be completed in the next 60 days and will fall due in 2024.

Kenya’s budget policy statement indicates that Kenya plans to borrow a total of Ksh608 Billion which will be raised via Eurobond (Ksh250 Billion), syndicated loans (Ksh37 Billion), Domestic market (Ksh317 Billion).

Earlier in March, a government-commissioned audit revealed that the controversial Ksh 250 Billion Eurobond was spent appropriately and could be accounted for.

The findings tabled in Parliament disclosed that the money was either paid out for legitimate purposes or directed to a consolidated fund.

“There is sufficient evidence that all the proceeds of the sovereign bond were either eventually received into the Consolidated Fund or paid out for authorised purposes,” read the report.