Kenya Sells Bonds to Meet $4 Billion Transport, Power Needs

Kenya is selling infrastructure bonds for the first time in a year to cover spending needs that are among the highest in Africa for expanding transportation networks and electricity supplies.

The East African nation is offering 12-year bonds worth 15 billion shillings ($168 million) at a fixed rate of 11 percent, according to the Nairobi-based Central Bank of Kenya, adding that the sale closes on Oct. 21; while the proceeds will finance road, energy, water and irrigation programs.

The government needs money to build roads, a railway and port and lay down a pipeline to ensure oil reserves that are being developed in the remote north can be exported, even as it struggles to narrow its budget deficit.

 Kenya’s investment needs of $4 billion a year to deliver on its infrastructure pledges is one of the largest on the continent, according to the Tunis-based African Development Bank.