Kenya is once again set to borrow another kShs 780 billion in Eurobonds despite the rising public debt and mounting pressure from the public to slow down on borrowing.
The details have emerged through the International Monetary Fund (IMF), which has revealed President Uhuru Kenyatta’s government is back in the international market seeking additional funds for the next one and half years.
According to a borrowing plan to IMF by the National Treasury, the country is set to borrow KShs 528 billion in concessional loans. The loans are said to have longer grace period.
Another kShs 253 billion, on the other hand, would be commercial loans that come with high-interest rates and a short term repayment period.
The IMF noted the loan programme allows the country to borrow more funds for debt repayment.
Treasury in January indicated it planned to push parliament to raise the country’s debt ceiling from the current kShs 9 trillion to a new limit of kShs 12 trillion.
Download our app from play store and get updates everyday for FREE. Press the button below.