Kenya plans to price it’s $500 million Samurai Bond at an attractive rate of between 1% and 2%.
The move signals Kenya’s intent to tap into more cost-effective sources of funding
The decision to price the Japanese bond sale within such a competitive interest bracket rubber stamps President William Ruto’s commitment to reducing Kenya’s borrowing costs.
Kenya has recently experienced higher interest rates in credit market, with Rates as high as 12%.
Samurai Bond Timely
The Samurai Bond is set to be concluded in June this year.
Authorities are aiming to boost tax to GDP ratio to 25% over the next decade, up from the current 16%.
This increase is part of Kenya’s long-term economic strategy to provide a more substantial domestic revenue base to support the its development agenda.
