Banks Demand Liability Management to Refinance Kenya’s Ksh300 Billion Eurobond

Kenya is among four countries in Sub-Saharan Africa that have Eurobonds maturing in 2024 with the country expected to raise Ksh306 billion (USD 2 billion) by June next year.

According to a Financial Report by Capital Gain, international investors are worried that the country will not be able to raise the amount in six months.

With the economy struggling, Capital Gain revealed that Kenya has been approaching international banks to refinance the Eurobond.

President William Ruto’s administration is finding it difficult to get a refinancer as many banks are listing liability management as a requirement before agreeing to such a proposal.

President William Ruto and World Bank Regional Vice President for Eastern and Southern Africa Victoria Kwakwa (in green) alongside other World Bank officials at State House Nairobi on February 7, 2023.


Liability management is a process of managing the use of assets and cash flows to reduce the firm’s risk of loss from not paying the liability on time.

“All bankers and investors agreed that the days of heavy African sovereign bond issuance were over,” the financial report states.

Kenya has only one Eurobond with former President Uhuru Kenyatta cancelling another few days to the 2022 general elections.

While Kenya and the rest of Sub-Saharan Africa have shied away from Eurobond for close to two years, it is estimated that the region will return to the international bond market in 2024.

Lack of market access has forced most African countries to search for other sources of funding which include loans from the International Monetary Fund (IMF) and the World Bank.

In less than a year, Kenya has borrowed over Ksh300 billion from both the IMF and World Bank.

Bankers are confident that while the IMF and World Bank have been the main financiers of development projects in Kenya, it is inevitable for the country to float another Eurobond.

“They (Kenya and other countries in Sub-saharan Africa) will have to return to the international bond market at some point because while the depth of funding such agencies (IMF and World Bank) is surprising, it is not bottomless,” the bankers noted.

President William Ruto greeting World Bank Regional Vice President for Eastern and Southern Africa Victoria Kwakwa at State House on February 7, 2023.


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