Kenya has secured a U.S.$500 million syndicated loan arranged by a consortium of five international lenders, with the proceeds expected to fund ongoing development projects approved in the just-ended financial year, reports The East African.

The lenders have reportedly said the facility is in two tranches of three and five years, but did not specify the respective amounts allocated to each tranche and also did not disclose the interest terms of the syndicated loan.

The funds will be used to settle part of the government's outstanding bills, which stood at about U.S.$3.8 billion at the end of March 2023, The East African has further revealed.

The government had mandated Citibank, Rand Merchant Bank, the Standard Bank of South Africa, Standard Chartered Bank and their affiliates as bookrunners for the deal, Reuters reports.

The latest announcement reportedly comes as a boost to the east African nation which has struggled to access international capital markets after surging yields in Eurobonds in 2022.

Kenya has not yet decided how to manage a $2 billion Eurobond maturing in June 2023, with repaying the bond seen as a key test of the young government.

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