KENYA: The government will focus on increasing revenue collection before implementing a proposed bond buy-back according to recent statements from the Cabinet Prime Minister Musalia Mudavadi.
He reiterated that authorities have no intention of defaulting on its bonds and that all due payments will be made on time. He was quoted stating, “We are focused on ensuring that we raise more revenues at the base and then that will give us the strength to restructure our debt portfolio, which at that time, could include earlier repayment of what we owe”. (Bloomberg)
We reiterate that authorities will continue looking at different liability management options which include buying back a portion of the 2024s and redeeming the bond in full. The statements from the prime minister reinforce this view.
