Treasury needs to go slow on expensive debt

The Treasury has sought a new $750 million loan from international investors, in addition to the $2 billion inaugural sovereign bond issued in June, which was four times over-subscribed.

While it is good that the country is still able to draw foreign investor confidence – particularly at a time when Kenya’s insecurity is making international headlines – the Government appears to be taking undue full advantage of this by increasing the repayment burden on Kenyan taxpayers. This year alone, the Government has borrowed Sh247 billion from the international market.