CBK Governor Patrick Njoroge explains Eurobond II trail

CBK Governor Patrick Njoroge. [Beverlyne Musili, Standard]

Central Bank of Kenya (CBK) Governor Patrick Njoroge yesterday moved to avoid the controversy that rocked the Eurobond four years ago.

In a press conference at CBK yesterday, Dr Njoroge gave a step by step account of the movement of the Sh200 billion secured after the country floated a 10- and 30-year bond.

Njoroge said the bank opened an offshore account at Citibank on February 20 to receive the proceeds of the sovereign bond.

“This is not surprising. That is the way we had to receive these resources. Not a single dollar was missing,” said Njoroge.

He further explained that on February 28, CBK received Sh200 billion into this account.

He said CBK transferred the entire amount to the consolidated fund account belonging to National Treasury on March 12.

He explained that CBK then converted the $1.99 billion into Kenyan shillings at the going rate and put in the account the sum in equivalent Kenyan currency.

“Once the Government has the funds in Kenyan shillings, it can use them in whichever way it wants according to the processes. One of the things of course is repaying loans they have,” said the governor.

Finance Cabinet Secretary Henry Rotich indicated that part of the Eurobond cash would be used to pay Sh100 billion loans that will mature next year.