The yield on Kenya’s $2 billion of eurobonds due 2024 climbed 267 basis points this week to 13.67% after presidential candidate
@RailaOdinga
said he plans to restructure debt if he wins the Aug. 9 election.
@BloombergAfrica
Next Africa By Antony Sguazzin
@alykhansatchu
@RailaOdinga
@BloombergAfrica
Are you sure the rise isn't because someone is taking a position expecting that we shall default thus allowing them to attach the country?
So either Raila is in cohorts with them or is one of them. So lets be careful about pedestrian conclusions.
@alykhansatchu
@RailaOdinga
@BloombergAfrica
Investors are pricing in political risk fueled by such inappropriate sentiments. Sadly, our CBK Governor hasn't been helpful. Instead he has been strategically ambiguous
@alykhansatchu
@RailaOdinga
@BloombergAfrica
What to do with the debt? Restructuring may be the only way out. So don't pretend otherwise just to be loved by foreign investors. The landing will come anyway and it will just be harder.
@alykhansatchu
@africaupdates
@RailaOdinga
@BloombergAfrica
He's being by reckless. Is he suggesting that Kenya is unable to pay its debt and so opting for a restructure? Investors will decimate the KSH if that's the case. Otherwise he could have made the case to buy it back or switch it to the outer years. There are other safer options
@alykhansatchu
@RailaOdinga
@BloombergAfrica
Wrong conjecture. The rising yield is not because of
@RailaOdinga
plan for debt restructuring. On the contrary it's because of the looming fed rate hikes . A tragic coincidence that both events happen at the same week