Kenya Seeks $1 billion Loan

Kenya is looking to secure a $1 billion syndicated loan in order to settle debts scheduled to mature in the first half of 2019. It is anticipated that the loan will be secured from at least three commercial lenders and will be arranged by the Trade and Development Bank (TDB) and Standard Bank.

As part of the Treasury’s 2019 Medium Term Debt Management Strategy (MTDS) it has further been announced that there will be a cap on commercial loans at 4% of total external debt, with an overall mix of 38% external debt financing and 62% gross domestic financing.  Kenya’s current external loans stand at Sh 2.6 trillion.

The funds will be used to finance maturing debts, as well as for development expenditure. Among the debts due for imminent repayment are as $816 million commercial loan from Stanchart Bank, Standard Bank, Citi and Rand Merchant Bank. The loan was secured in March 2017 and has since accumulated interest of $130 million.

TDB plans to raise the cash by April.