By O’Brien Kimani
Kenya is set to kick-off a campaign in major cities of the West in a bid to shop around for investors for a planned international bond.
National Treasury Cabinet Secretary Henry Rotich will lead the Kenyan team that also includes Central Bank Governor Patrick Njoroge.
The road shows will tour cities in the United States, United Kingdom and other European cities.
National treasury says details of the planned bond are being finalized and will be released to the public soon.
The plans are aimed at sourcing for funds to bridge capital expenditure gap which is expected to drop to 7 percent in the next fiscal year.
Kenya’s quest to tap the international market in being driven by the success of her debut bond which raised 2 billion dollars in 2014.
The first road show is slated to take place this week and will be held in the cities of New York and Boston before proceeding to Washington DC next week where he will meet investors’ during the International Monetary Fund and World Bank annual meetings to be held in the US capital.
In the past, the National Treasury has hinted at tapping the international market by going for sukuk or Samurai bonds.
Early last month the National Treasury Cabinet Secretary told the national assembly that the 7 percent budget deficit will be financed through a mix of local and external borrowing ranging from direct bilateral loans, export credit agencies, new products like Sukuks and Samurai bonds, and all other products in the international market including the Eurobond.
According to a dispatch from the National Treasury, details of the planned international cash call is being worked on and will be released to the public once it is finalized.
If it succeeds, Kenya will become the first African country to float an international bond this year.
Other countries that have hinted at approaching international investors to raise funds include Mozambique, Nigeria and Ethiopia.