Business
Yatani goes for Sh60 billion loan as Kenya’s debt piles
The National Treasury is going for a Sh60 billion loan from local investors to fund infrastructure development after the country’s debt piled to Sh7.35 trillion in January this year, down from Sh7.28 trillion last December.
The debt is still expected to pile further if the treasury succeeds to secure Sh262 billion from the International Monetary Fund (IMF) in the current financial year ending June.
Projections are already showing that Kenya will borrowed close to a Sh1 trillion by this financial year but that will depend on whether part of the IMF funds will be used to refinance some of the maturing external loans.
Treasury CS Ukur Yatani, he defends over borrowing [p/courtesy]
The move to borrow from local investors comes after government borrowed up to Sh407.8 billion from the market by March 19, including commercial banks, pension funds, insurance firms and parastatals.
But the new infrastructure bond and the stock of domestic bond will shoot to Sh467.8 billion should CBK get sufficient subscribers. Experts argue that over subscription of the bond can allow CBK to borrow more than Sh60 billion in the current FY ending June.
The Ukur Yatani led docket is going for more loans despite when it vowed to stay away from expensive commercial loans. The National Treasury has also hinted that Kenya will return to the Eurobond market to borrow at least Sh124 billion by end of June 2022 to offset part of the principal repayment of Sh351 billion..
Kenya has already received over Sh500 billion from multilateral institutions as IMF, African Development Bank and World Bank meaning it will have to shop for other sources to fund a Sh3.01 trillion budget.
Director-General for Public Debt Management at the Treasury Haron Sirima said Kenya will have to access international markets for loans to support the budget and pay expensive loans that will soon be due.
Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news TIPS, story angles, human interest stories, drop us an email on [email protected] or via Telegram
The Crash of Koko Networks: A Detailed Look Into How and Why It Happened, And The Potential For A “Silver Lining” For Carbon Integrity
Commander Ali Nuno Orders Shoot-to-Kill on Coast Panga Gangs
State Agency Exposes Five Top Names Linked To Poor Building Approvals In Nairobi, Recommends Dismissal After City Hall Probe
US Sets June Deadline For Ukraine and Russia To End War, Says Zelensky
TikTok Told To Change ‘Addictive Design’ By EU Or Face Massive Fines
Nowhere To Hide: KRA Reinstates ‘Nil Returns’ After System Upgrade To Nab Tax Cheats
Crypto Firm Accidentally Sends $44 Billion in Bitcoins To Users
Kenya Freezes Bank Accounts Holding Hundreds of Millions in Suspected Terror Finance Operation
Why A Multibillion Smartmatic Poll System Contract Has Been Linked To Firing Of IEBC CEO Marjan
Kenyan Authorities Foil Two Human Trafficking Attempts at JKIA
Your Excellency! How Ida’s New Job Title From Ruto’s Envoy Job Is Likely to Impact Luo Politics Post Raila
Epstein Files: Bill Clinton and George Bush Accused Of Raping A Boy In A Yacht Of ‘Ritualistic Sacrifice’
Cooking Fuel Firm Koko Collapses After Govt Blocks Sh23bn Carbon Deal
ABSA BANK IN CRISIS: How Internal Rot and Client Betrayals Have Exposed Kenya’s Banking Giant
EXPOSED: SHA Officials Approve Higher Payments for Family, Friends as Poor Patients Pay Out of Pocket
Kenya Stares At Health Catastrophe As US Abandons WHO, Threatens Billions In Disease Fighting Programmes
Jaramogi Clan Tells Raila Jr, Winnie Against Disrespecting Their Uncle Oburu, Warns of Curses
The General’s Fall: From Barracks To Bankruptcy As Illness Ravages Karangi’s Memory And Empire
KRA Can Now Tax Unexplained Bank Deposits
Minnesota Fraud, Rice Saga, Medical Equipment Deal: Why BBS Mall Owner Abdiweli Hassan is Becoming The Face of Controversial Somali Businessman in Nairobi
-
Americas7 days agoEpstein Files: Bill Clinton and George Bush Accused Of Raping A Boy In A Yacht Of ‘Ritualistic Sacrifice’
-
Business1 week agoCooking Fuel Firm Koko Collapses After Govt Blocks Sh23bn Carbon Deal
-
Business7 days agoABSA BANK IN CRISIS: How Internal Rot and Client Betrayals Have Exposed Kenya’s Banking Giant
-
Lifestyle21 hours agoThe General’s Fall: From Barracks To Bankruptcy As Illness Ravages Karangi’s Memory And Empire
-
Business4 days agoKRA Can Now Tax Unexplained Bank Deposits
-
Investigations3 days agoEpstein Files: Sultan bin Sulayem Bragged on His Closeness to President Uhuru Then His Firm DP World Controversially Won Port Construction in Kenya, Tanzania
-
Investigations2 weeks agoPaul Ndung’u Sues SportPesa for Sh348 Million in UK Court, Accuses Safaricom Boss of Sh2.3 Billion Conspiracy
-
Americas7 days agoEpstein Files: Trump Accused of Auctioning Underage Girls, Measuring Genitals and Murder