Kenya plans debt fund to avoid biting cash crunch

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Treasury Cabinet Secretary Ukur Yatani. FILE PHOTO | NMG

Kenya will create a special fund for settling of fast-maturing loans from the financial year starting July in a bid to mitigate future cash flow challenges arising from heavy repayment of debts whose grace period has expired.

The National Treasury said it will imminently gazette rules for establishing the fund to specifically pay off maturing debt, buy back bonds when interest is low and retire some of the debts early to avoid higher costs in future.

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