Nairobi, Feb. 23 -- Taxpayers have incurred a cost of Sh7.3 billion as an incentive offered to investors for early buyback of two existing Eurobonds and issuance of longer-term replacement bonds to fund it.

The incentives are a price discount to investors who bought the country's $2.25 billion (Sh290.3 billion) bond last week and a premium offered in the buyback of $500 million (Sh64.5 billion) from owners of the debt.

Kenya will receive Sh4.1 billion less on the Sh290.3 billion following the discount offered to investors who had sought higher returns for the Eurobonds sold last week

It also gave investors a premium of Sh3.2 billion for giving up two existing bonds, with one of $350 million (Sh45.2 billion) due in 2032 and another $150...