Debt repayments take 68% of infrastructure bond

The National Treasury has used 68 percent of loans borrowed for infrastructure to repay debts leaving only Kes16 billion of the Kes50.8 billion raised for use by the government.

The Treasury had advertised for an infrastructure bond worth Kes50 billion but received an overwhelming interest with investors bidding Kes59 billion.

Infrastructure bonds are tax free hence the elevated interest from banks and investors.

Kenya which is facing Kes1.19 trillion debt servicing costs is increasingly finding itself borrowing from Peter to pay Paul rather than invest in the economy.