Kenya has obtained another $210 million (KSh 33.9 billion) loan from the Trade and Development Bank (TDB) and is seeking additional funding from the pan-African lender as it gears up for the maturity of a Eurobond in June.
The National Treasury expresses optimism about securing further financing from the TDB before the conclusion of the current financial year.
The move comes as Kenya strategically fortifies its foreign exchange reserves, anticipating a significant $2 billion (KSh 323 billion) Eurobond bullet payment due on June 24.
Central Bank Governor Kamau Thugge revealed that Nairobi expects to receive approximately $300 million (KSh 48.45 billion) from the TDB, intending to utilize these funds for a partial buyback of the impending bond.
In a noteworthy financial development on January 17, the International Monetary Fund (IMF) extended a loan of $683.2 million (KSh 110.3 billion) to Kenya.
The objective is to assist the country in repaying its Eurobond and strengthening foreign exchange reserves. This loan disbursement elevates Kenya’s total borrowing from the IMF to KSh 427 billion.
Kenya’s initial Eurobond debt, pegged at issuance, stood at KSh 697.7 billion. However, due to the depreciation of the local currency, it has escalated to KSh 1.117 trillion.
The strategic financial maneuvers are aimed at ensuring fiscal stability and meeting financial obligations as the country wallows through its economic landscape.
By xamse
January 19, 2024
