Kenya is reportedly seeking a fresh $2.5 billion (Sh250 billion) Eurobond from the United States and Europe.
The East African reports that the government is planning to use the funds to finance part of its budget, service loans that have matured as well as complete stalled projects.
National Treasury officials are said to have flown to the US and Europe last week to seek the Eurobond, the country’s third in five years.
The publication reports that the Treasury officials began meeting investors on Thursday to market the bond which is being sold in two tranches of 12 and 31 years.
Kenya wants to service a $750 million (Sh75 billion) Eurobond priced at 5.875 percent that is due for repayment this June.
The government further seeks to finance its Sh2.7 trillion 2019/2020 national budget, which is expected to have a deficit of about Sh607.8 billion.
Experts, however, opine that Kenya might experience difficulties selling the new Eurobond following the International Monetary Fund’s decision to withdraw $1.5 billion (Sh150 billion) standby facility last year.
They say the withdrawal of the facility might scare away prospective investors.
If Kenya manages to secure the fresh Eurobond, the county's public debt, which currently stands at Sh5.27 trillion, will further go up, thus putting more weight on the taxpayers’ shoulders.
The government plans to spend Sh551 billion of its 2019/2020 budget to repay debts.