Kenya is expected to float the second tranche of the bond to raise 28 billion shillings ($198.58 million) to clear the pending fuel subsidy bills it owes to oil dealers.
The bond is part of the 45 billion Shillings debt that the government converted into a three-year bond to settle the arrears owed to oil marketers, Business Daily newspaper reported.
The first tranche, which closed three weeks ago, raised 18.5 billion Shillings, 3.5 billion shillings more than the target.
The interest rate for the bond stands at 14.22 percent and the government will make the first interest payment in November.
Kenya has paid oil marketers 124.07 billion shillings so far to maintain prices low since April 2021 but is struggling to settle the pending 45 billion shillings.
Vivo Energy, the African nation’s largest oil dealer by market share, is owed 13.45 billion shillings, followed by TotalEnergies at 8.16 billion shillings and Rubis, the third biggest oil marketer, at 4.03 billion shillings.