Kenya says focus of its funding strategy has shifted to concessional loans

NAIROBI, Nov 21 (Reuters) – Kenya said on Tuesday that its funding strategy had shifted focus to concessional loans given uncertainty around its access to global bond markets.
The East African country’s public finances have been pressured by the legacy of the COVID-19 pandemic and frequent climate change-induced droughts.
Its ability to access funding before a $2 billion Eurobond matures next June has been closely watched by investors.
“In light of the uncertainty surrounding access to global bond markets, the government strategy has shifted to focus on seeking out concessional funding from the multilateral lenders like IMF and the World Bank and bilateral development partners,” Finance Minister Njuguna Ndung’u said in a statement.
He added the government was “stepping up efforts to improve macroeconomic environment and carrying out the necessary structural reforms. Kenya will access commercial financing when global market conditions improve.”
On Monday the World Bank said it foresaw $12 billion of financial support to Kenya over the next three years. The IMF last week reached a staff-level agreement with Kenya, unlocking access to a $682 million funding tranche and boosting its lending programme by $938 million.
Reporting by Duncan Miriri; Writing by Elias Biryabarema; Editing by Alexander Winning
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