𝗧𝗵𝘂𝗿𝘀𝗱𝗮𝘆, 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆 𝟮𝟮, 𝟮𝟬𝟮𝟰

The Public Debt and Privatization Committee Chaired by Hon. Abdi Shurie (Balambala), met with officials from the Office of the Auditor General, led by the Deputy Auditor-General, Ms. Joyce Ndung'u to discuss the 2024 Medium-Term Debt Management Strategy (MTDS).

 During the meeting, Ms. Ndung'u raised concern about Kenya's reliance on Eurobonds as a measure to sustain debts.

 "The Government has now issued four Eurobonds each with a higher coupon rate reflecting the likely unsustainability of the current debt portfolio. Issuing and servicing these debts involves additional fees and commissions. Additionally, fluctuations in foreign exchange rates impact the actual cost of repayment," said Ms Ndung'u.

The Committee was also told that the Government recently issued a new Eurobond to manage the first Eurobond, which will mature in 2031, valued at USD 1.5 billion, which is approximately Kshs.233 billion, at an exchange rate of Kshs. 155.5 to the USD.

 "While Eurobonds offer access to funds for development projects, managing repayment obligations remains a crucial challenge especially because of the shorter maturity period and increasing coupon rates," noted Ms. Ndung'u.

 The Committee will engage other stakeholders to discuss further the debt management strategies. These include; the Governor of the Central Bank of Kenya (CBK); the Cabinet Secretary for National Treasury and Economic Planning, the Comptroller of Budget, and Civil Society Groups.

Earlier, the Parliamentary Budget Office (PBO) presented an analysis of the MTDS for 2024. The MTDS was tabled in the House on 15th February 2024 and committed to the Public Debt and Privatization Committee to examine and table a report within ten days.