The successful placement of USD1.5 billion Eurobond and its oversubscription is an affirmation that investors presently hold a high degree of confidence in the government’s economic turn-around strategy.
While citing the outcome of the Cabinet meeting held on Wednesday, February 14, 2024, Government Spokesperson Dr Isaac Mwaura noted that the successful completion of the transaction placed the country firmly on course to buying back Kenya’s existing USD 2 billion Eurobonds due later this year.
Reaping from Euro Bond’s placements and the targeted interventions by the government, the Kenya shilling has now reversed the downward trend and is appreciating in value against major world currencies, he noted.
“This means that the shilling has now appreciated for 11 straight days to trade below Sh153.75 at some commercial banks,” added Dr Mwaura, highlighting that on Wednesday, the shilling posted its strongest intra-day gain against the US dollar in the last 12 years which he believes would effectively lower debt service costs thereby attracting more investors.
Speaking during a press briefing at the Kenyatta International Convention Centre (KICC) in Nairobi, the Spokesperson stressed that top on the government’s agenda is the betterment of Kenyans’ welfare in all aspects of life by meeting its promises and remaining a listening government in its response to people’s needs.
On the cost of living, Dr Mwaura cited continuous improvement as promised by the Government highlighting maize prices which dropped by 12.7 per cent last year, driven by improved local harvests courtesy of good weather, and the fertiliser subsidy programme.
The Government Spokesperson noted that the fall in maize prices has been a major relief for consumers as it has lowered the cost of unga consumed in many households from Sh230 last year to Sh130 currently.
He further said that electricity tariffs were expected to drop by Sh3.44 per unit this month while fuel prices have gone down by Sh1.00 in the latest pump price review by the Energy and Petroleum Regulatory Authority (EPRA).
By Michael Omondi
