Kenya signs $800m syndicated loans to plug budget deficit

Image result for Kenyan presidentThe Kenyan government is to raise $800 million syndicated loans from four international institutions to boost foreign-currency reserves and plug a widening budget deficit.

The East African nation’s Treasury signed the agreements with Standard Chartered bank, Citibank, Rand Merchant bank and Standard Bank.

Kenya plans to raise $1.5 billion through external borrowing in the current budget that ends June 30th.

It has already secured $250 million from lenders led by PTA Bank, an East African trade-finance lender based in Burundi.

The World Bank estimates Kenya’s financing gap at 9.6 percent of gross domestic product in the 2016-17 financial year.

leave a reply