Economics
Kenya Seeks to Refinance Foreign Commercial Debt at 5% Ceiling
- Total debt, undisbursed loans are close to borrowing limit
- China is nation’s biggest bilateral lender with $6.7 billion
Foreign commercial loans make up 35% of all external debt in Kenya.
Photographer: Patrick Meinhardt/BloombergThis article is for subscribers only.
Kenya plans to refinance its foreign commercial debt with loan interest rates capped at 5% and tenure of 14 years, according to a National Treasury economic recovery plan.
By the end of August, East Africa’ biggest economy had 7.06 trillion shillings ($64.3 billion) of public debt and 1.35 trillion shillings in undisbursed loans, taking it close to a 9 trillion-shilling borrowing ceiling and limiting Treasury’s space for additional credit, according to the document released on Wednesday.