Kenya has reaffirmed its commitment to fulfilling its debt service obligations and maintaining a strong sovereign credit rating, Treasury Cabinet Secretary Njuguna Ndung’u has said.
CS Ndung’u stated in a statement that Kenya had paid $68.7 million in interest on the $2 billion Eurobond.
This comes after President William Ruto’s pledge to have the government pay $300 million of the bond by December 2023, a plan which the government reneged on.
According to the Cabinet Secretary, Kenya’s latest $68.7 million interest payment on the Eurobond not only demonstrates its budgetary discipline, but it also sends a positive message to foreign investors.
“The final interest payment on this Eurobond is scheduled for the last week of June 2024, alongside the repayment of the principal amount of $2 billion,” he said.
The CS restated that the government has been carrying out a thorough plan for debt service payments since July 2023.
Concessional finance and revenue are used in this plan to pay off high-cost obligations in the national debt portfolio.
According to the CS, Kenya’s economy is expected to grow steadily due to continuous policy changes and cooperation with both bilateral and multilateral development partners.
Driven by income generation, the plan for fiscal consolidation seeks to limit borrowing, lower debt levels in the medium run, and eventually improve the lives of Kenyans.
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