Kenya issues $3.5 billion in bonds to repair ailing infrastructure
In order to address ailing infrastructure, Kenya is issuing bonds to the tune of $3.5 billion to raise funds for repairs and development. However, there is concern that Kenya is amassing too many loans, with the IMF changing its risk of external debt distress to moderate from low. It is anticipated that the level of public debt will equal 59.9% of GDP.
Earlier this month, Kenyan lawmakers "approved legislation for the Kenya Roads Board to leverage taxes from fuel imports to back the infrastructure bonds" it was reported by Moses Kuria, the deputy chair of the national assembly’s transport committee.
The securities will be floated in tranches and it is anticipated that the first tranche will be issues in March. This was confirmed by Jacob Ruwa, executive director of the Kenya Roads Board.
Part of the money will settle 80-billion shillings in pending bills due to contractors.