{"id":113457,"date":"2024-02-22T18:23:31","date_gmt":"2024-02-22T18:23:31","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back"},"modified":"2024-02-22T18:51:49","modified_gmt":"2024-02-22T18:51:49","slug":"shilling-gains-20-units-on-eurobond-buy-back","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back","title":{"rendered":"Shilling gains 20 units on Eurobond buy back"},"content":{"rendered":"

Africa-Press – Kenya. <\/strong><\/span>Kenya on Tuesday paid back $1.5 billion of the inaugural $2 billion 2014 Eurobond, marking a successful settlement of the buy back plan and boosting investor confidence.<\/p>\n

Speaking on Wednesday in Naivasha at a four day Cabinet retreat, president William Ruto said the successful buy back has boosted the local currency.<\/p>\n

\u201cInvestor confidence has been significantly enhanced, resulting in the appreciation of the shilling against the US dollar, from Sh162 to Sh142,\u201d Ruto said.<\/p>\n

\u201cIn turn, this has reduced our overall debt by Sh722 billion, and also reduced our debt service costs by Sh195 billion over the next six years, saving the country a total of Sh917 billion.\u201d<\/p>\n

The Central Bank of Kenya (CBK) yesterday quoted the shilling at 144.14, up from the lows of 161.35 in January, reflecting a 17-unit value gain.<\/p>\n

Ruto further disclosed that the money used for the buy back was raised through the recently issued Eurobond Worth $1.5 billion.<\/p>\n

The new loan is divided into three instalments, with a weight average life of six years and is expected to mature in 2031.<\/p>\n

The bond is priced at 10.37 per cent, the highest rate an African state has ever offered.<\/p>\n

Kenya\u2019s shilling has taken a major beating against the dollar in the past three years, loosing about 61 per cent of its value since it started weakening in early 2020 to January this year.<\/p>\n

This meant much pain for importers, as they were incurring extra costs for goods. The burden is often passed to consumers, prompting an increase in the general cost of living.<\/p>\n

Kenya being a net importer, this means importers as of January this year, were incurring close to an extra Sh60 to buy a dollar for imports, as compared to early 2020.<\/p>\n

A weak shilling also piles pressure on the country\u2019s forex reserves as importers seek the much-needed dollar to pay for imports.<\/p>\n

This is evident, as the country\u2019s reserves have remained below the statutory level of four months of import cover since August last year.<\/p>\n

Latest data by the CBK weekly bulletin shows the foreign exchange reserves stood at $7,031 million (3.8 months of import cover) as of February 15.<\/p>\n

Kenya’s external debt burden is also expected to grow on a weak shilling, as majority of it is dollar denominated.<\/p>\n

Kenya\u2019s public debt shot up by $13.3 billion (Sh1.92 trillion) in the year ended December 2023, raising the country’s indebtedness to a new high of $76.83 billion (Sh11.1 trillion).<\/p>\n

This is on the back of the weakening shilling, which shed about 27 per cent of its value during the year.<\/p>\n

It had a heavy impact on external public debts, accounting for 73 per cent (Sh1.4 trillion) of the Ksh1.9 trillion increase during the year.<\/p>\n

However, the president reiterated that in the interest of sound debt management, the government has implemented a combination of strategies to ensure debt is sustainable at all times.<\/p>\n

The strategies include the diversification of financing sources, smoothening the maturity profiles and proactive management of debt liabilities in general.<\/p>\n

For More News And Analysis About Kenya<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Kenya. Kenya on Tuesday paid back $1.5 billion of the inaugural $2 billion 2014 Eurobond, marking a successful settlement of the buy back plan and boosting investor confidence. Speaking on Wednesday in Naivasha at a four day Cabinet retreat, president William Ruto said the successful buy back has boosted the local currency. \u201cInvestor […]<\/p>\n","protected":false},"author":84,"featured_media":113456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[6857,7003,544],"class_list":["post-113457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-kenya","tag-kenya"],"yoast_head":"\nShilling gains 20 units on Eurobond buy back - kenya<\/title>\n<meta name=\"description\" content=\"Kenya on Tuesday paid back $1.5 billion of the inaugural $2 billion 2014 Eurobond, marking a successful settlement of th ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shilling gains 20 units on Eurobond buy back\" \/>\n<meta property=\"og:description\" content=\"Kenya on Tuesday paid back $1.5 billion of the inaugural $2 billion 2014 Eurobond, marking a successful settlement of th ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-22T18:23:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-22T18:51:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2024\/02\/sm_1708615155.167938.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"647\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Shilling gains 20 units on Eurobond buy back\",\"datePublished\":\"2024-02-22T18:23:31+00:00\",\"dateModified\":\"2024-02-22T18:51:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back\"},\"wordCount\":506,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2024\/02\/sm_1708615155.167938.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Kenya\",\"Kenya\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/shilling-gains-20-units-on-eurobond-buy-back\",\"name\":\"Shilling gains 20 units on Eurobond buy back - 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