Kenya has created a special fund to ease future cash flow pressures on government revenues arising from fast-maturing debts which are forecast to double to nearly Sh1 trillion in the next three years after expiry of grace period.
Treasury secretary Ukur Yatani has gazetted rules to set up and manage the “Sinking Fund” whose cash will, among others, be spent on paying off maturing debt, buy back bonds when interest is low and retire some of the debts earlier to avoid higher costs in future.
