RUTO unveils his masterplan to free Kenya from debt crisis but it will cost taxpayers’ a whopping Sh130 billion – Look!

 Friday, June 7, 2024 – In a bid to free Kenya from debt distress, President William Ruto has unveiled a whopping Ksh130 billion plan to buy back the Eurobond that is maturing in 2027.

The National Treasury will utilise the recent Ksh156 billion World Bank loan allocation to offset the long-term debt three years before the maturity date.

“The planned buyback is aimed at smoothing the amortization profile as was done for the recent issuance which was smoothed over three years,” stated the World Bank report.

It will be the second time that the country is making Eurobond buyback this year after partially settling the Ksh310 billion ($2 billion) Eurobond maturing in June this year.

This will bring the total buybacks this year to Ksh326 billion ($2.5 billion) even as the government puts in place strategies to offset more debt.

This comes amidst Ruto's call for concessional financing by accessing loans with lower interest rates and longer repayment tenors.

Kenya also plans to issue debt swaps and sustainability-linked bonds as part of managing its debt.

In February this year, the National Treasury announced Ksh233 billion buyback of the Eurobond maturing in June this year.

The Kenyan DAILY POST