NAIROBI (Reuters) – Kenya will stop issuing a one-year Treasury bill as part of a strategy to help reduce the amount of short-term debt and will instead favour longer dated maturities, according to the National Treasury.
The east African country will now only be issuing two Treasury bills notes, the 91-, and 182-day instruments.
“The target is to gradually reduce the stock of Treasury bills while lengthening debt maturity and issuance of medium to long term debt securities,” the Treasury said in a debt management strategy paper published on Monday.
The paper said 18.6% of the country’s domestic debt will mature by June 2025, mainly due to short-term debt falling due.
Kenya is struggling with heavy debt and has been scrambling for new financing lines after deadly protests last year forced it to scrap planned tax hikes.
(Writing by Elias Biryabarema; Editing by Tomasz Janowski)
