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Uhuru Appetite For Loans To Hit Hard As 200 Billion Becomes Due this Year

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A 5 year grace period for the SGR loan borrowed from China’s Exim Bank expires in May meaning as of July, Kenya will have to pay back to China 82.85 Billion, up from 36.24 Billion.

Kenya in May 2014 entered into a deal to borrow $3.233 billion loan (Sh324.01 billion) from China’s Exim Bank, comprised of $1.633 billion commercial loan and $1.6 billion concessional to build the 385km Mombasa and Nairobi SGR line.

The loan is to be repaid in 15 years .

The deal to fund the first phase of the SGR, Kenya’s single largest infrastructure project by cost since independence, saw Beijing overtake Tokyo as Kenya’s largest bilateral lender.

Debt repayments to Beijing will account for a third of the Sh274.24 billion debt that Kenyan projects will be due to foreign lenders in 2019-20.

Other loans that will come calling includes the first Eurobond that was issued in 2014. In June, Kenya will have to make a 78.3 billion payment to repay the loan that the Auditor General seriously questioned where it was used.

In March, Kenya will have to pay a commercial loan to Britain’s Standard Chartered Bank amounting to Sh78.7 billion. Also, before the end of June, another Sh37.1 billion syndicated loan arranged by Trade and Development Bank, formerly PTA Bank, will have to be paid, bringing the total of loans to be paid in six months to a massive Sh200 billion.

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