https://x.com/Nairobi_Leo/status/1912150618459742280
Kenya’s New Eurobond
Kenya raised $1.5 billion at an interest rate of 9.5% .
This means annual interest (coupon payment) = $1.5B × 9.5% = $142.5 million per year .
The bond matures in 2036 , meaning it will be paid for 12 years .
Total interest cost over 12 years = $142.5M × 12 = $1.71 billion .
Principal repayment in 2036 = $1.5 billion .Total cost of new bond = $1.71B (interest) + $1.5B (principal) = $3.21 billion .
How Much More Kenya Will Pay
Total cost of new bond (including interest) = $3.21B .Total cost of keeping old bond for 12 years = $1.656B .Extra cost due to higher interest + buyback premium = $954M + $2.25M = ~$956M .
So, Kenya will pay about $956 million more over time due to the higher interest rate, even after the buyback.
Here’s a visual breakdown of Kenya’s Eurobond transaction in a bar chart
Total cost of the old bond (if extended to 2036) Total cost of the new bond (including interest) Extra cost incurred due to the higher interest rate and buyback premium
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Mikymas:
… $954M + $2.25M = ~$956M.
So, Kenya will pay about $956 million more over time due to the higher interest rate, even after the buyback.
Total cost of the old bond (if extended to 2036)
Generally, the number of Kenyans who understand this stuff well enough to understand how serious it is, is insignificant in terms of political voice.
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RV_Pundit:
…al breakdown of Kenya’s Eurobond transaction in a bar chart
Generally, the number of Kenyans who understand this stuff well enough to understand how serious it is, is insignificant in terms of political voice.
IT’s up to you to educate every pumkin head on what we are facing.
21 He said to them, “Do you bring in a lamp to put it under a bowl or a bed? Instead, don’t you put it on its stand? 22 For whatever is hidden is meant to be disclosed, and whatever is concealed is meant to be brought out into the open. 23 If anyone has ears to hear, let them hear.”
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Ndindi looks like a chap who would hold interests of this country in the best of heart
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Ndindi natembeya for president
Shhh! Ni mkikuyu. Wacha wengine wakule.
Why didn’t Ndindu Nyoro speak up at the time it was happening? Why wait till 2025? Also, what was the alternative? How come no one is calling out Gatheca for taking a Eurobond with no plan/intention to repay? Hasla does not deserve blame on this one.
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Mikymas:
… $954M + $2.25M = ~$956M.
So, Kenya will pay about $956 million more over time due to the higher interest rate, even after the buyback.
Total cost of the old bond (if extended to 2036)
What do you mean if extended? It was extended by doing this restructure. Kenya would have otherwise defaulted
Pseudo_1:
…e, even after the buyback.
What do you mean if extended? It was extended by doing this restructure. Kenya would have otherwise defaulted
There was never a risk of default. They just wanted cash money they can steal. You see you cannot steal a debt, but if you get fresh cash, you can claim you are using it to pay the old debt that you’re buying from your friends from yourself. Kenya has never had a cashflow problem, we have a theft problem
https://x.com/SpokespersonGoK/status/1911760701263077547
The fact the he fell out with Ruto shows they disagreed after Ruto took office. Ruto akajaribi kumfix ati wamekosana juu ya Gachagua but ndindi is smart.
He has kept off Gachagua drama like a pro, never attended impeachment and has never commented on impeachment or held talks with Gachagua.
Haya, makosa imefanyika. What does Ndindu suggest we do now? How do we get out of this mess? Dawa ya deni ni kuripa.
Mikymas:
… Kenya would have otherwise defaulted
There was never a risk of default. They just wanted cash money they can steal. You see you cannot steal a debt, but if you get fresh cash, you can claim you are using it to pay the old debt that you’re buying from your friends from yourself. Kenya has never had a cashflow problem, we have a theft problemhttps://x.com/SpokespersonGoK/status/1911760701263077547
What you are sending ni pesa from visas, right? There was a risk that paying all of it will make the shilling weak
Pseudo_1:
… You see you cannot steal a debt, but if you get fresh cash, you can claim you are using it to pay the old debt that you’re buying from your friends from yourself. Kenya has never had a cashflow problem, we have a theft problemhttps://x.com/SpokespersonGoK/status/1911760701263077547
What you are sending ni pesa from visas, right? There was a risk that paying all of it will make the shilling weak
Aaand soo? Annnd? What the fuck is your point?
Mikymas:
…et fresh cash, you can claim you are using it to pay the old debt that you’re buying from your friends from yourself. Kenya has never had a cashflow problem, we have a theft problemhttps://x.com/SpokespersonGoK/status/1911760701263077547
Aaand soo? Annnd? What the fuck is your point?
Sasa unajam juu ya nini kijana?
Pseudo_1:
…/x.com/SpokespersonGoK/status/1911760701263077547
Sasa unajam juu ya nini kijana? Hizi maghasia huwa hamna emotional intelligence at all? The link you shared is just a meaningless distraction. Kama kenya haingelipa tungekuwa Srilanka 2.0
We totally had the ability to pay. There is not reason why we couldn’t
Mikymas:
…ni pesa from visas, right? There was a risk that paying all of it will make the shilling weak
We totally had the ability to pay. There is not reason why we couldn’t
Good, naona umewacha matusi now lets discuss it. Kenya would have used the foreign exchange reserves, which would have led to a balance of payment crisis, since it did not have enough USD. Remember the IMF had given us a huge chunk of it Jan last year ($625m), which was used for budget, debt repayment etc. Hakukuwa na pesa ingine. To ensure that did not happen, they had to go to the eurobond market to get $1.5B.
Mikymas:
…ni pesa from visas, right? There was a risk that paying all of it will make the shilling weak
We totally had the ability to pay. There is not reason why we couldn’t
Maybe tell us pesa ingepatikana wapi ya kulipa.
Hizi maghasia huwa hamna emotional intelligence at all? The link you shared is just a meaningless distraction. Kama kenya haingelipa tungekuwa Srilanka 2.0