KENYA: LEVERAGING CONCESSIONAL AND CHINESE LOANS TO REFINANCE BOND MATURITIES

   Tue, 12 December 2023

Kenya’s government plans to tap into multilateral financing facilities to make an early repayment of USD 300 million to Eurobond holders this month, while using proceeds from a new Chinese loan to partly refinance another USD 1.7 billion in international bonds by June 2024. If a sovereign default event can be avoided in the meantime, and payments to development projects fall back on track, Kenya’s economic and fiscal outlook will improve next year. However, a planned privatisation programme to boost the fiscal position in the longer term will face delays due to legal challenges and underwhelming investor interest in state asset divestments.

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