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Eurobond borrowing bad for us

Kenya issued its fifth Eurobond bond on February 14.

Photo credit: | Shutterstock

What you need to know:

  • We are told these funds are earmarked for the retirement of a portion of Uhuru Kenyatta’s $2 billion bond, which carries a 6.875 per cent coupon rate.
  • The burden of Eurobond financing was well summarised in an interesting segment aired on a local TV station, on the true cost of this $2 billion incurred by the Kenyatta presidency.