Kenya to diversify debt sources by selling bonds in Asia and Middle East
Following a successful Eurobond sale, Kenya aims to broaden its external sources of debt by tapping into the markets of China, Japan, and the Middle East.
The country is set to address a significant budget deficit of 326 billion Kenyan shillings ($2.5 billion) in the upcoming financial year starting July. To tackle this challenge, the country plans to venture into new markets for bond sales, Kenyan newspaper Business Daily reports.
Treasury Cabinet Secretary Njuguna Ndung'u told Business Daily that the government is ready to shift its focus towards eastern markets following a prosperous Eurobond sale.
He said the plan entails accessing the Chinese market through a Panda bond, targeting the Japanese market with a Samurai bond, and engaging the Middle East with a Sharia-compliant Sukuk bond.
“Yes indeed. We need to diversify to other markets, the Chinese market with Panda bonds, the Japanese market with Samurai bonds, and the Middle East with Wakala Sukuk bonds. All these diversified bond markets will support financing projects and programmes under the Bottom-Up Economic Transformation Agenda,” Prof Ndung’u said
With this, the country aims to reduce its dependence on Western capital markets.
