The Treasury Cabinet Secretary responded to the claim that the Eurobond proceeds were misused by top civil servants for trading foreign stocks. The Kenyan government targeted to raise USD $1.5 Billion but ended up raising USD $2 Billion. Most of the bond sales were made to the US investors (2/3) and a quarter went to the British investors.
The Star Newspaper reported that Kshs 250 million was collected out of the sale. Out of this amount, Kshs 53 billion was used for loan repayment and Kshs 196 Billion was spent on development projects.
Below is a table showing how the money was distributed:
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| Image: Show how the Eurobond proceeds were used by the national treasury of Kenya |
This revelation on how the money was used is important and it is our hope that the same explanations or more detailed ones are provided to the bond holders. Lack of clarifications on where the Eurobond is residing and how the government is using the proceeds thereof will make the investors to sale the bonds and seek explanations later. This means that there is a lot of investor relations that must be done.
