Treasury eyes financing budget deficit with reopening of long term bond

Treasury building Nairobi PHOTO COURTESY

Nairobi,KENYA:The national treasury has reopened a 10-year-old bond worth sh.30 million which aims at financing a deficit in the national budget that was read out two weeks ago.

The bonds were reopened on Monday and the bidding kicked off on  the same day  and is expected to wind up on Tuesday next week.

The bond was reopened just 3 months before the end of the 2016/2017 fiscal year which is expected to end in June.

According to the national budget which was readout 2 weeks ago, the current budget deficit is sh. 523 billion which the government said it is expected to finance through domestic and international borrowing.

The reopening of the 10 year bond comes just a few days after the government launched the M-akiba a retails bond which allows the investors to invest through mobile money for as low as sh. 3000.

The Jubilee government has come under heavy scrutiny for its borrowing with debt levels hitting the sh.3.7 trillion mark as of March 2017.

In 2016, the auditor general revealed that sh.215 billion of the sh.280 billion  funds from the Eurobond issued by the government at the Irish stock exchange could not be accounted for.