‘Tumefuliza ksh210billion Eurobond, secretly,”angered reactions to 3rd Eurobond

Kenyans are very angry. While the country was sleeping the Treasury was busy securing a loan which no one was aware of.

Kenya is venturing into choppy debt markets to sell $2bn of eurobonds, raising questions about the east African country’s ability to keep servicing a mounting debt burden.

Kenya is expected to sell seven-year and 12-year bonds — its third such issuance in five years — partly to repay a $750m eurobond due to mature in June. It has dropped plans to issue a 31-year tranche it had earlier marketed.

The Kenyan treasury, which said on Wednesday it had orders of at least $6bn, indicated that the seven-year bond was likely to be priced at about 7.25 per cent and the 12-year paper at 8.25 per cent.

The latter is a step up from the 7.25 per cent coupon that a 10-year Kenyan bond carried when the country last came to the market in February 2018.

Public debt has risen to close to 60 per cent of national output, up from below 40 per cent in 2013, as Kenya has borrowed heavily from China to fund a $4.8bn railway scheme, the country’s largest infrastructure project since its independence from Britain in 1963.

This move by the Government has elicited angry reactions from Kenyans.

Here are some reactions

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