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Friday, July 28, 2017

Treasury says it has borrowed Sh82bn syndicated loan from four international commercial lenders

National Treasury PS Kamau Thugge./FILE
National Treasury PS Kamau Thugge./FILE

Kenya has signed an $800 million (about Sh82.49 billion) syndicated loan with four international lenders and the government has already drawn down the sum, a senior Treasury official said yesterday.

President Uhuru Kenyatta, who faces re-election in August, has raised borrowing since taking power in April 2013. Last week, he dismissed criticism of the higher borrowing, saying it was funding development in the East African nation.

In January, the Nairobi government picked Standard Chartered, Standard Bank, Citi and Rand Merchant Bank to lead the syndicated loan.

"We signed and have already drawn down," Kamau Thugge, principal secretary at the ministry of finance, told Reuters.

A market source earlier told Reuters the deal was signed last Thursday. The terms were not immediately known.

Kenya has said it will raise Sh150 billion ($1.46 billion) from external commercial sources, partly to plug a fiscal deficit equal to 9.7 percent of gross domestic product in its budget for the fiscal year to June 2017.

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