By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Newsunplug KenyaNewsunplug KenyaNewsunplug Kenya
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Reading: Treasury secures Ksh 70B to fund stalled projects
Share
Notification Show More
Font ResizerAa
Newsunplug KenyaNewsunplug Kenya
Font ResizerAa
  • News
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Newsunplug Kenya > Blog > News > Treasury secures Ksh 70B to fund stalled projects
News

Treasury secures Ksh 70B to fund stalled projects

hallanaija
Last updated: July 7, 2023 8:28 am
hallanaija 2 years ago
Share
KRA
National Treasury and Economic Planning Cabinet Secretary Njuguna Ndung’u poses for a photo with a briefcase containing the 2023/2024 budget statement before proceeding to Parliament Building on June 15, 2023. PHOTO | LUCY WANJIRU | NMG
SHARE

The National Treasury has secured Ksh 70 billion ($500m) through a syndicated loan organized by a consortium of five international lenders.

This is part of the Ksh 84 billion ($600m) that Kenya was seeking in the international market to finance various projects in the 2022/2023 budget.

A statement by the five lenders has not disclosed the interest the three and five-year loans will attract.

Treasury plans to borrow Ksh 200 billion from the international market in the fiscal year 2023/24 to repay maturing debts and fund stalled projects, especially in the transport sector.

The funds are expected to ease the cash flow crisis and boost the country’s dwindling foreign exchange reserves which have taken a hit from the weakening shilling.

Treasury coffers are cash-strained amid debt maturity pressure coupled with highly ballooned debt-servicing costs in recent years and is considering a raft of interventions including going for another Eurobond to help deal with the situation.

treasury
National Treasury and Economic Planning Cabinet Secretary Njuguna Ndung’u poses for a photo with a briefcase containing the 2023/2024 budget statement before proceeding to Parliament Building on June 15, 2023. PHOTO | LUCY WANJIRU | NMG

In March this year, Kenya approached four international lenders namely, Standard Chartered Bank of the UK, US-based CitiGroup, and South African lenders Standard Bank and Rand Merchant Bank to arrange a Ksh 84 billion facility.

READ MORE  Waiguru tells the Mt. Kenya region to avoid tribal politics and support Kenya's Kwanza government

However, the markets have been unfavorable due to dollar pressure and the ongoing commodity market crisis that has made international financial markets volatile.

In the current financial year, Kenya is tapping Ksh 405 billion loan at the Africa Export and Import Bank whose cost will vary depending on the purpose of every withdrawn portion during the three years that the facility will be active.

Expert says the trade financing route is expected to be cheaper than the concessional loan withdrawals since the bank will only factor in the commissions for every project supported.

 

You Might Also Like

KNUT expresses worries about the capitation payment delay.

Meru Governor Mutuma nominates Linturi’s ex-running mate as his deputy

Police officer sentenced to 30 years for killing businessman in Limuru

14 police employees kidnapped in Mexico: officials

Kenya has spent Ksh.2.1 billion on Haiti mission, Treasury records reveal

Share This Article
Facebook Twitter Email Print
Previous Article logging Logging ban lifted in commercial forests only, CS Tuya reiterates
Next Article private security Kenya Rolls Out Standardized Training Curriculum For Private Guards
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

about us

We influence 20 million users and is the number one business and technology news network on the planet.

Recent Posts

  • FULL analysis of VAR interventions in La Liga this season reveals unending mistakes from Spanish referees
  • Kitale: 19-year-old boy killed for allowing cows to graze in maize farm
  • Barcelona fan delivers strong argument on why Hansi Flick will not last at Barca
  • Chaos in Nandi as police unleash teargas during MP Salasya’s rally
  • 21-year-old woman attacked, raped and left for dead in Nyandarua

Recent Comments

No comments to show.
Newsunplug KenyaNewsunplug Kenya
© Newsunplug Kenya. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?