Kenya plans to raise Ksh.50 billion ($377 million) by selling additional infrastructure bonds this month, according to sources familiar with the matter.
The government intends to reopen two tax-free securities initially sold last year (2023), aiming to attract inflows to support Kenya’s struggling currency.
These details have emerged from individuals requesting anonymity as the information has not yet been made public.
The Central Bank of Kenya (CBK) is expected to announce the offer shortly, with the possibility that the terms of the bonds may be subject to change.
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In an email statement according to Bloomberg, the CBK noted that all Treasury bill and bond auctions are published on its website but did not provide further comments.
The Kenyan shilling has been one of the worst-performing currencies globally this month, weakening by 2.5% due to investor concerns over the impact of ongoing anti-government protests, which have persisted for the past six weeks.
Kenyan infrastructure bonds are particularly attractive to investors because their returns are tax-exempt, offering a beneficial investment option amidst the current economic challenges.
The forthcoming bond offer is expected to help stabilize the currency and attract more investment, contributing to the country’s financial resilience during a period of political and economic uncertainty.
