Kenya secures $500m commercial loan to mitigate financing pressure
Kenya has acquired a commercial loan of $500 million from a syndicate of foreign banks to ease its biting financial crisis after the World Bank approved a $1 billion financing for the struggling economy.
Haron Sirma, director-in-charge of debt management at the National Treasury told The EastAfrican that the government had sought $600 million and had already received $500 million from the syndicate that comprises American Citibank, British Standard Chartered Bank, Stanbic Bank and South Africa’s RMB Holdings Ltd, previously known as Rand Merchant Bank Holdings.
“The balance will come before the end of June, assuming that we would not have gotten money from elsewhere,” he said, conceding that commercial loans were not the preferred source of debt.
“We will always see if we have a good alternative source of financing,” he said.
The news came at a time when the World Bank announced a $1 billion loan to the country, bringing Kenya’s financing from foreign lenders in May to $1.5 billion.
This is part of the $2 billion the National Treasury was seeking between May and June to ease its weakening financial position; help stabilise the shilling exchange rate and bolster forex reserves which have been lingering below the statutory four months of import cover.
