The National Treasury has unveiled plans to raise money by seeking a third Eurobond to repay previous loans.
The government plans to raise Ksh250 Billion to pay a debt of a similar amount that is due in June.
Speaking to Nation, Treasury Principal Secretary Kamau Thugge justified the borrowing as falling in line with the government's foreign borrowing plans to meet a budget deficit.
“We want to pay our debts in this financial year and this will reduce our debt service burden for next year,” he stated.
The government will also approach a consortium of international banks in a bid to raise Ksh37 Billion as a syndicated loan.
Part of debt will cater for the 2014 Eurobond valued at Ksh75 Billion and a 2012 syndicated loan of Ksh60 Billion.
The new issue is expected to be completed in the next 60 days and will fall due in 2024.
Kenya's budget policy statement indicates that Kenya plans to borrow a total of Ksh608 Billion which will be raised via Eurobond (Ksh250 Billion), syndicated loans (Ksh37 Billion), Domestic market (Ksh317 Billion).
Earlier in March, a government-commissioned audit revealed that the controversial Ksh250 Billion Eurobond was spent appropriately and could be accounted for.
The findings tabled in Parliament disclosed that the money was either paid out for legitimate purposes or directed to a consolidated fund.
"There is sufficient evidence that all the proceeds of the sovereign bond were either eventually received into the Consolidated Fund or paid out for authorised purposes," read the report.
