Kenya is facing the imminent payment of its $2 billion Eurobond, scheduled for June 2024. The Eurobond, borrowed in 2014 from the European money market, poses financial obligations for the country, with both the principal amount and accrued interest requiring settlement.

Last week, Kenya demonstrated its commitment to honoring its debt by timely paying $68.7 million, equivalent to KES 10.8 billion, as an interest installment from local revenue. This proactive move has sent a positive signal to investors regarding Kenya’s dedication to meeting its financial responsibilities.

President William Ruto has assured the public of the government’s commitment to honoring all debt obligations. Notably, the government prioritizes public debt payments as the first allocation from collected revenue, preceding other expenditures.

Looking ahead, Kenya has implemented a comprehensive plan for public debt management since July 2023. The strategy involves a mix of locally raised revenue and concessional financing to replace high-interest short-term debts. President Ruto’s international engagements have secured financing from entities such as the World Bank, IMF, Africa Development Bank, and bilateral partners, aimed at boosting foreign reserve levels from January to March 2024.

Despite initial challenges in revenue collection at the start of the financial year, recent months have witnessed impressive results due to government-driven policy and tax reforms. The reassurance is given that Kenya remains on track to meet its debt obligations.

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