The government of Kenya has started talks with the International Monetary Fund (IMF) and the World Bank with an aim of securing another loan to help pay Ksh297.6 billion Eurobond.
Kenya has already started putting measures in place to ensure funds are available for paying the Eurobond loan that is due for payment in June 2024.
The Business Daily has reported that IMF’s deputy director for Africa Catherine Pattillo had said additional funding to Kenya will be one of the agenda for discussion during a review mission in December 2023.
Kenya has so far received Ksh312.5 billion in the ongoing programs with the IMF, including the second largest drawdown of Ksh61 billion that was approved by the fund.
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This was after the IMF extended Kenya’s program by 10 months to end in April 2025.
“Kenya is working to secure additional funding from the The IMF and other international money lenders while implementing fiscal measures to address some of the funding requirements,” said Pattillo.
Pattillo added that the IMF was working on reforms that will help reduce debt vulnerabilities and also help Kenya in regaining access to the money markets.
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At the same time, unconfirmed reports have revealed that Citi and Standard Bank are the lead organizers for another Eurobond for Kenya.
However, the Central Bank of Kenya (CBK) governor Kamau Thugge had on October 4 revealed the government’s plans to tap into concessional financing to settle the maturing loans.
“Currently, the credit market conditions are not favourable for refinancing the Eurobond. We have been engaging our lead managers and lead advisers on how to address the issue of the 2024 Eurobond,” said the CBK governor.
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Kamau explained that the government was considering options of getting additional funding from the IMF and World Bank while also assessing the amount offered and the loan needed.
