Kenya's Billion-Dollar Road Bond Initiative
Kenya plans to issue a 175 billion shillings securitised bond to fund road construction. Finance Minister John Mbadi announced that the bond, backed by a road levy in fuel prices, will support infrastructure projects. A 93 billion shillings loan has already been secured against expected bond proceeds.
- Country:
- Kenya
Kenya is set to launch a 175 billion shillings securitised bond this month, aimed at generating funds for road construction initiatives. The announcement was made by Finance Minister John Mbadi on Tuesday.
The innovative bond is underpinned by a road levy component included within the retail price of fuel. This approach reflects the government's commitment to advancing infrastructure development.
To further bolster this financial strategy, the government has already secured a 93 billion shillings syndicated loan, using the anticipated bond proceeds as collateral. The bond's issuance marks a significant step in Kenya's economic and infrastructural planning.
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