Serrari Group

The Kenyan government has revealed its plan to allocate part of the recently secured US$ 1.2 billion Development Policy Operations (DPO) loan from the World Bank to address an upcoming Eurobond repayment. With a portion of the Eurobond maturing on 24th June 2024, the government intends to utilize funds from the World Bank loan to fulfill this obligation, amounting to approximately US$ 500 million.

Earlier this year, Kenya initiated a tender offer to repurchase over US$ 1.4 billion of its US$ 2 billion Eurobond. The decision to utilize a portion of the DPO loan aligns with the World Bank’s objectives of fostering competitive markets, promoting inclusive labor practices, and enhancing climate action in Kenya.

Central Bank of Kenya (CBK) Governor Kamau Thugge has assured stakeholders that this utilization of the DPO loan will not impact the stability of the Kenyan Shilling. Thugge attributes the currency’s recent strength against major world currencies to market dynamics and an influx of foreign exchange inflows surpassing demand.

The Kenyan Shilling has demonstrated significant resilience in 2024, appreciating by 17 per cent against the United States Dollar, leading among African currencies. This performance is bolstered by increased foreign exchange inflows, effective monetary policies, and reforms in the foreign exchange market.

Furthermore, the CBK’s foreign exchange reserves, currently at US$ 6,979 million (equivalent to 3.63 months of import cover), provide a robust buffer against short-term shocks in the foreign exchange market.

As Kenya strategically manages its debt obligations, the decision to use the World Bank loan for Eurobond repayment underscores a commitment to fiscal prudence while safeguarding exchange rate stability amidst global economic fluctuations.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

7th June, 2024

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023