Kenya’s move to borrow from the international markets for the third time since 2014 has been greeted with surprise and condemnation from politicians and citizens worried about the country’s ballooning debt. The country just sold another dollar denominated Eurobond to raise one- point -six, four billion pounds in two different tranches with a seven-year and 12-year tenure.
The offer was heavily oversubscribed, receiving bids worth nine point five billion dollars, pointing to the attractive nature of the terms and the confidence of investors. Debate on social media on the matter is on whether the foreign loan had received parliamentary approval or another move to grow the gravy train.
The money is expected to be used for budgetary support as well as repaying previous loans that are due next month. Kenya’s first- and second-dollar denominated Eurobonds were sold in 2014 and 2018, with questions still lingering over how the money was spent