Another Sh310 billion bond on the cards as Eurobond figures saga rages on

Henry Rotich

Even before the Eurobond cash saga has been settled, plans are at an advanced stage to float a fresh sovereign bond in Japan and the Middle East.

The bond will raise the biggest chunk of the Sh310 billion the government plans to borrow from the external markets in the next financial year. A Sovereign Bond is a security for a loan issued by a national government to borrow money from sources outside the country. Details of the 2016 Budget Policy Statement (BPS), a document that explains the economic context within which the forthcoming budget will be presented, show that the Treasury is also looking at the possibility of floating a “Diaspora bond” for Kenyans living abroad.