NAIROBI, Kenya, Mar 20 – Central Bank of Kenya (CBK) Governor Patrick Njoroge says Kenya received the full amount of the second Eurobond that was floated last month amounting to $1.9 billion in an offshore account at Citibank New York February 28, 2018.
He says the money was converted to Kenya shillings and transferred to the consolidated fund account belonging to the National Treasury.
Njoroge says after conversion about Sh201.9billion was debited in the Treasury account.
“There is no money lost, all the money is now with Treasury,” Njoroge told journalists on Tuesday.
Kenya secured the fresh Eurobond issue on the same day that the International Monetary Fund stated that the country’s public debt may soon become unsustainable.
The National Treasury, with backing from the Central Bank of Kenya, maintains that the level of public debt in the country is within acceptable limits and therefore is no cause for alarm.
“The fact that we got $14 billion in investor appetite reflected the continued support the country receives. We now have a dollar yield curve stretching out to 30 years, making Kenya one of only a handful of governments in Africa to achieve this,” National Treasury said.
Over a third of the funds that the government has raised will go towards settling debts that are due for repayment while the balance will be used for development initiatives.
However, the recent issue has increased Kenya’s debt burden with debt to GDP likely to edge towards the 60 percent mark in FY 2018/2019, from 42 per cent in 2013, with the International Monetary Fund today cautioning that Kenya’s budget deficit level is heading to the red zone.