The Treasury faces a headache raising Sh280 billion from external lenders in the current fiscal year for budget deficit financing after interest rates on the country’s sovereign debt rose to new highs of nearly 17 percent.
Yields on Kenya’s outstanding Eurobonds that are trading on the London and Irish stock exchanges have risen by an average of 4.4 percentage points since the end of May, forcing the government to rethink plans to float a new sovereign bond for the fiscal year that ended on June 30.
