PRESS STATEMENT FOR IMMEDIATE RELEASE 25TH FEBRUARY 2024 – WEEH! WHY CELEBRATE PAYING DEBT WITH MORE EXPENSIVE DEBT? 

 We citizens and institutions working in Kenya are shocked that the government is celebrating buying back Eurobond with another Eurobond at a higher interest rate of 10.7% as per the statement issued by the president on the 21st of February 2024 announcing, “Kenya’s successful settlement of a substantial part of its 2014 $2.0 billion Eurobond” and the issuance of a new Eurobond. 

The government’s decision to issue a new 2024 $1.5 billion Eurobond to buy back part of the 2014 $2.0 billion Eurobond pay-out due in June 2024 demands a critical evaluation in light of the country’s challenges and debt management practices. This comes barely a week after another infrastructure bond was issued without clearly indicating what it will be used for at an interest rate of 18.7%.