County governments in Kenya are looking for ways to raise more money for projects in their areas. One option they are looking into bonds. The officials in the devolved units are seeking approval from the Treasury to list bonds on the stock market.
The question on everyone’s mind is; how many counties qualify to float bonds. In the latest auditor general’s report, only 2 counties – Makueni and Nyandarua – out of the 47 received a clean bill of health.
Counties will have to clean up their accounts and pass a creditworthiness test to proceed with the plan. “For counties to get additional funds through the capital markets for infrastructure projects will depend on their ability to pay back the bonds,” said the Chairperson for the Commission on Revenue Allocation Jane Kiringa.
According to the Head of CRA, 10 counties have been identified for a pilot program to check on their creditworthiness.