Kenya Set To Receive Ksh193 Billion Loan From UAE Next Week
According to reports, the government will get a loan of Ksh193 billion from the UAE by the end of next week.
The loan negotiated last year is for $1.5 billion with an interest rate of approximately 8.2 percent.
According to Bloomberg, the loan is scheduled to hit the government’s coffers in the final week of February.
The loan comes at a critical time for President William Ruto’s administration, which is experiencing funding deficits in various areas.
Kenya is set to receive a $1.5 billion (Sh195 billion) loan from the UAE by the end of next week to stabilize its finances.
— Moe (@moneyacademyKE) February 22, 2025
The loan, which was originally planned to be disbursed in stages, will now be given all at once.
Despite prior suggestions that financing would be staggered, Kenya is anticipated to receive it all at once.
This means the Treasury will receive Ksh193 billion in a single payment.
Late last year, there were indications that the government planned to disburse in tranches to stay under the International Monetary Fund’s (IMF) borrowing constraints.
According to that structure, Kenya was to receive the first tranche of disbursement worth Ksh90 billion last month, with the remaining amount to be channeled to Kenyan accounts subsequently.
Last year, the government sought financial assistance from the UAE to diversify its budget funding choices, shifting away from reliance on Eurobonds, traditional bilateral lenders like China, and multilateral institutions.
Treasury has been in a scramble to find additional funds, and it was revealed earlier this month that the government is considering securing another loan program with the International Monetary Fund.
Treasury Cabinet Secretary John Mbadi told Reuters, “Maybe before the current program comes to a close in April, there should be some indicators of whether we are starting a new program and what that new program will entail.”
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Mbadi revealed that the government was still looking into various options, including Eurobonds, to fund budgets for the current fiscal year.
He said, “We have the option of taking that… or we go to the market, which is open now, and with our good and positive credit.”
The government urgently needs funding. The Ministry of Health and Education is requesting extra funds.
They need to repay Ksh30 billion in debt to private hospitals. Schools are also warning that they may have to close if they do not receive further help.
Kenya Set To Receive Ksh193 Billion Loan From UAE Next Week
