KENYA: Kenyan eurobonds fell on Monday after the Treasury’s Director of Debt Management, Haron Sirma stated that “Buyback is one of the strategies for 2024 but doubt whether investors are willing to sell before maturity of the bonds.” (East African)
We believe that authorities are still looking at different liability management options which include buying back a portion of the 2024s and redeeming the bond in full. Recall that earlier in the year the Kenyan government sought advisors to assist with effectively managing the country’s debt, including but not limited to the 2024 eurobond. Authorities have indicated that these options will be communicated in the coming months.
Separately on Kenya, the Central Bank of Kenya (CBK) confirmed the date for the next MPC as 3 October. We maintain our view that the policy rate (CBR) is likely to remain at 10.50% for the rest of this year but highlight that the MPC may continue to lean on other policy tools as it manages monetary policy. We also note that President Ruto officially launched DhowCSD (Kenya’s Central Bank Securities Depository infrastructure platform) on 11 September.