Kenya Has Already Borrowed 41% of Its Year’s Domestic Target
Net borrowing of Sh406 billion in two months, against a full-year target of Sh987.4 billion. An August infrastructure bond drew record bids of Sh460.4 billion. The post Kenya Has Already Borrowed 41% of Its Year’s Domestic Target appeared first on The Rio Times .
In the first two months of Kenya's fiscal year, the government borrowed Sh406 billion (approximately US$3.15 billion), which is 41.11% of the Sh987.4 billion (around US$7.65 billion) annual objective. The borrowing surge in July saw the Treasury more than double its domestic borrowing to Sh138.25 billion (about US$1.07 billion).
August then completed the remaining amount. The strategy is deliberate, aimed at signaling to the market that the government's appetite for cash will be contained later in the year, thereby setting interest rate expectations for the remainder of the fiscal year. The August infrastructure bond was a standout success, attracting Sh312 billion (about US$2.42 billion) from record bids of Sh460.4 billion (approximately US$3.57 billion).
The CBK plans to issue an additional Sh120 billion (around US$930 million) in September through two reopened bond sales. This move could potentially push the borrowing share above 50% during the first quarter of the fiscal year.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
