Kenya Makes Ksh218 Billion Eurobond Payment 4 Months Before Maturity Date

President William Ruto holding talks with Pakistan Prime Minister Anwaar-ul-Haq Kakar, Beijing, China in October 17, 2023.

President Wiliam Ruto on Wednesday, February 21, announced that his administration had made a USD1.5 billion (Ksh218 billion) payment as part of a USD2 billion Eurobond loan. 

Ruto, speaking during a press briefing in Naivasha, Nakuru County, remarked that the payment was made four months before maturity to alleviate the concerns of foreign investors.

He lauded the payment as a milestone for Kenya at a time when most developing countries were finding it difficult to settle their international debt obligations. 

“Yesterday marked a significant financial milestone for Kenya as we successfully settled the buy-back of a substantial part of the USD2 billion 2014 Eurobonds that were scheduled to mature on 24th June 2024,” Ruto briefed the nation. 

President William Ruto speaking during a joint National Executive Retreat and Parliamentary Group consultative meeting in Naivasha, Nakuru County on February 19, 2023.

He added that the money used to pay part of the Eurobond was raised on February 12, after the country floated a similar bond. 

Ruto announced that the decision had now assured foreign investors as it showed his administration’s economic management strategies prowess. 

He further indicated that Kenya had come out of the situation as a nation that had sound debt management. 

“I can now confidently say, Kenya is no longer on the list of countries that run the risk of debt default,” the Head of State remarked. 

The statement by Ruto came a day after the Deputy Auditor General, Joyce Ndung’u cast aspersions on Kenya’s overreliance on taking loans to repay debts.

Ndung’u, while appearing before the Public Debt and Privatization Committee in Parliament, remarked that it was not sustainable for Kenya to be depending on Eurobond to settle existing loans. 

The President has been borrowing heavily since assuming office in September 2022 to settle debts incurred by the previous administration.

According to the Quarterly Economic and Budgetary Review released by the National Treasury, Ruto’s administration had to make payments to the tune of Ksh104 billion for the first half of the 2023/2024 Financial Year. 

This was in relation to interest rates and principal amounts that were borrowed by former President Uhuru Kenyatta’s administration. 

President William Ruto receives the instruments of power from President Uhuru Kenyatta on September 13, 2022.
President William Ruto (left) receives the instruments of power from his successor, Uhuru Kenyatta, (right) on September 13, 2022.