We have no choice but default Euro. At that time, dollar will double its value in the defaulting month. Which means if it’s 150 before default, it will jump to 300 within 15 days.
However defaulting is a process and not a single event. So defaulting doesn’t start the day loan payment is due but rather a few months before.
Hii ni ile Eurobond 1 ya 2014?
Naona we have been paying.
Kenya’s Treasury will tap concessional external loans to fund the KSh259 billion ($2 billion) bullet repayment of its debut Eurobond due in the next financial year starting July 2024.
Kenya’s Treasury Principal Secretary Chris Kiptoo told the country’s members of parliament that the international sovereign bond of $2 billion (KSh259 billion) issued in 2014 will be falling due during the 2023/24 financial year.
Dr Kiptoo told Kenya’s National Assembly’s committee on Public Debt and Privatization that the country was expected to repay Eurobond debts of KSh254.16 billion ($1.96 billion) in 2024, KSh114.37 billion ($880 million) in 2027 and KSh127.08 billion ($978 million) in 2028.
Kiptoo told the committee chaired by Balambala MP Abdi Shurie that Kenya had paid $127.07 million (KSh16.5 billion) as of March 1, 2023.
Kenya is expected to make the bullet payment to retire the 10-year sovereign bond whose issuance in 2014 signalled the country’s former Jubilee administration’s turn to commercial debt to fund the budget.
When the bond was floated, the international debt market was awash with capital looking for a home, which African economies were only too happy to provide at rates that would look like a bargain today.
Kenya took up $2.75 billion (Ksh355.5 billion at today’s rates) in two tranches — a 10-year paper and five-year issuance, at interest rates of 6.78 percent and 5.87 percent respectively. The five-year paper was repaid partly using the proceeds of another $2.1 billion (KSh272 billion) Eurobond issued in May 2019.
Yaani wachukue loan kulipa loan? If you as an individual you operate like that you will be in sheeet! but the government does it no one is complaining. Wacha niendelee kubeba arimis ni shaftiwe porepore.
Stack up your dollars I know wanjigi desperately wants this default to happen a lot of wealth will be transferred amidst the chaos of default either through inflation or snapping up of state assets on the cheap
Ile inauma sana mimi kama shabik ni kuwa hio pesa sijawahi ona wala kushuhudia manufaa yake maishani mwangu, lakini ninalazimishwa nilipe deni sikuchukua. Yaani in Kenya, profits are private but debts are public. As @Zoomx / @BonoNugu says, Bure Kabisa Ng’ombe ici!
I remember that time when baba raised the red flag they said eurobond was not a loan. JSKSLMM and his clique were all over explaining. Wacha alipe sasa. Sirrey
What do you mean? You live in a functional state with access to roads, electricity, water, security(external & internal), education, stable governance, health and an environment where business is somewhat possible.
Exactly. That Wanjigi guy niko sure kuna game ashapanga for when the default happens
Hehe, the roads you use daily, sgr, stable stima, internet, water etc did not just drop from heaven, the loans were used to put them in place. So you benefit from the loans daily, so lipa loan bila makasiriko.
I believe Moses Kuria was right !
Hamna, eurobond haikutumika kufanya project yeyote. Hio ilifyonzwa na wafisadi. SGR was overblown by Ksh 280 billion. Initially it was a consortium of businessmen who wanted to build the railway from Mombasa to Malaba led by Jimmy Wanjigi and he’s on record stating the whole project would have costed Ksh44billion with electric locomotives. Sirkal hijacked and the cost overblown to over Ksh320 billion, from Msa to Nbi, without electric locomotives. Jaribu kufasiri hio mazematics.
Hehe, the reason I stopped watching news many years ago.
Hio pesa ni Ile family za JSKS , jagathi , uhunye, rao , and other political thieves enjoy watu wakitesekea kimilili.mbwa za watu
The problem is the balloon payment coming up.