Nairobi, May 3 -- Investors have continued to dump Kenya's 2024 Eurobond (due in June 2024) on account of market prices, disorderly public finances and a much weaker fiscal trajectory.

The bond matures in June 2024 and already the government is looking to refinance it. The yield on the bond touched 20 percent last week, from 6.6 percent at issue, reflecting investors' fear of a possible default.

But before we proceed, let's provide some context. First, a bond is a fixed interest security, a piece of paper in the form of an 'I owe you" which guarantees the holder two things: annual regular interest payments and also getting the value of the bond back when it matures (its face value).

When the government sells a bond, the bond itself pay...