Kenya’s National Treasury is considering implementing currency swaps and resuming bond switch to manage the mounting public debt and ease the government’s repayment pressure exacerbated by demand for pay increments by civil servants, amid faltering domestic revenue collections.
The Director-General of the Public Debt Management Office Raphael Owino says that the swaps are “the best option.” “We have a range of other options for liability management and perhaps swaps are the best option rather than hedging,” Mr Owino said, adding that bond switch is another option under consideration in the current (fiscal year.
