The oversubscribed bond-by 500%- fetched 770 billion against the planned 176 billion. This is a clear indication of the faith foreign investors still have in the Kenyan economy despite prevailing uncertainties.
With the government’s domestic borrowing on the decline, domestic interest rates are to set to go down.
“By accessing these external funds, we will reduce government borrowing from the domestic markets, thereby helping drive down interest rates which should boost investment, spur economic growth, provide more employment opportunities to our people,” the president promised. This is the green light for the private sector to rush to the commercial banks, borrow and invest.
With a relatively stable shilling and a single digit inflation rate; things are looking up for Kenya. The government should however move to insulate the economy from external shocks and curb the menace that is insecurity.
Author: Harriet Chesang