Kenya To Borrow Ksh 110 Billion Fresh Loan From IMF

The Treasury has revealed plans to borrow syndicated loans amounting to Ksh 110.7 billion, a report from the International Monetary Fund (IMF) has shown.

The IMF report showed that the fresh loan will be used for budgetary replenishment and support purposes.

From the Ksh 110.7 billion, the government has agreed on the terms for Ksh 36.9 billion. This comes at a time when the country reversed its stance against borrowing from commercial banks.

“In light of the protracted dislocations in international financial markets, we plan to raise the $900 million external commercial borrowing planned for FY2022/23 from international banks

“We have successfully contracted one-third of this amount and are in the process of reviewing offers for the remainder,” Treasury CS Njuguna Ndung’u said.

The Treasury did not reveal the terms for the one-third of the loans already contracted.

Elsewhere, as reported on WoK, National carrier Kenya Airways (KQ) and electricity distributor Kenya Power is set to receive a Ksh 37.3 billion bailout.

The government bailout will support restructuring at the two state agencies.

KQ will receive Ksh 34.95 billion and Kenya Power Ksh 2.35 billion in the financial year 2021/22 and 2022/23.

This funding is part of fiscal consolidation conditions set by the International Monetary Fund (IMF) which requires the government to accelerate reforms at parastatals and return them to profitability.

For this matter, the government will use at least Ksh 54.8 million to bailout State-owned enterprises (SOEs).