Kenya's government has raised 67.06 billion shillings ($443 million) from an oversubscribed infrastructure bond.    

The six-and-a-half-year amortised bond was advertised in October seeking to raise 50 billion shillings to fund development projects.     

The government received 88.89 billion shillings worth of bids and accepted 67.06 billion shillings, the Central Bank of Kenya said in a statement.    

The bank offered an interest rate of 17.93% for the bond.    

It was on sale from October 20 to November 8, and is due in 2030.    

Interest earned from the bond will be tax free as is the case for infrastructure securities as provided for under the East African country's Income Tax Act.    

The bond is part of the government's efforts to close a 4.4% budget deficit for the fiscal year 2023/24, which runs from July to the end of June.

Njuguna Ndung'u, Kenya's finance minister, delivered the budget against a backdrop of a sluggish economy, rising inflation, and a slower-than-expected pace of tax collection causing the deficit. 

(Editing by Seban Scaria seban.scaria@lseg.com )