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Kenya Gets U.S.$$500 Million Loan to Pay Part of Govt's Debt

Kenya has reportedly 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.

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

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.

In May 2023, the government announced plans to invest about U.S.$731 million to revamp the Nairobi-Mombasa standard gauge railway (SGR), build new sidings, and buy more locomotives and wagons in the next three years.

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