Treasury stretches debt maturity to 5.7 years
Monday, June 1, 2020 0:01
By CHARLES MWANIKI
The Central Bank of Kenya building in Nairobi.
FILE PHOTO | NMG
The maturity profile of domestic debt has lengthened to 5.7 years from 4.1 years two years ago on the back of a sustained effort to issue longer-term securities, Central bank of Kenya (CBK) has announced.
CBK governor Patrick Njoroge said during a virtual briefing following the Monetary Policy Committee (MPC) meeting last week that the option of having maturing Treasury bills rolled over using medium-term bond offerings is another option that the regulator is considering as a means of lengthening the maturity profile of local debt.
Such bonds, he said, are useful for lengthening the maturity profile of domestic debt, something that the CBK and Treasury have been trying to do.
The Treasury has obtained 97.1 percent of its domestic borrowing target of Sh389.7 billion for the current fiscal year, sparing the government the need to raid the market with any urgency in the next month.