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Why government has become hooked to Eurobond

Cabinet Secretary Ministry for Finance Henry Rotich. [File picture]

Imagine a businessman from Kenya sells rose flowers in the US and is paid in dollars. Good for him. With the dollars, he gets to buy items overseas which he can’t find back at home.

He also has some generous relatives who once in a while send him a few dollars, helping him replenish his reserves of this critical foreign currency. Then one day, he thinks of expanding his business. So he approaches a US bank for a loan in dollars.

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