It is highly likely that the National Treasury used a sizable amount of the FX kitty to settle the first charge of 221/22 budget year. Last month, Kenya went into the Eurobond market to raise funds to clear due loans. It raised Sh108 billion ($1 billion) in a Eurobond issuance, at an interest rate of 6.3 percent for the 12 years. Generally, the country's debt profile grew by Sh400 billion since March despite mounting pressure on the National Treasury to cut loan appetite. The cumulative inflows in the 12 months to June 2021 totaled $3.38 billion (Sh365.6 billion), a 20.3 per cent jump compared to $2.81 billion (Sh303.9) billion same period in 2020.

Source: The Star July 26, 2021 01:00 UTC