Mr Rotich says he will get cheaper money in terms of rate on offer and tenure to settle the short-term obligation that was expensive to our debt books. Two, the ministry has piled up three syndicated loans in just three years, mostly expensive short-term debt, an indication that Treasury has been imprudent in managing the country’s finances. To make matters worse, the International Monetary Fund (IMF) will soon be reviewing a Sh150 billion precautionary facility it extended to the country. If they were to lift it, the shilling will face significant volatility threats which could balloon our debt towards a tipping point. When Kenya borrowed the Sh215 billion Eurobond in 2014, the shilling was exchanging at a rate of Sh87 against the dollar.

Source: Standard Digital November 14, 2017 08:48 UTC