Kenya Secures $210 Mln Joint Loan

A spokesperson for Kenya's Treasury Department has announced that the country has obtained a joint loan worth $210 million, arranged by the "Trade and Development Bank," with expectations of additional loans to be secured before the end of the fiscal year, though further details remain undisclosed.

Kenya's Central Bank Governor, Kamao Tugui, had previously disclosed in December that the country anticipated a $300 million loan from the "Trade and Development Bank," as reported by Bloomberg today.

Just yesterday, Kenya secured a $685 million loan from the International Monetary Fund, ahead of the euro bond maturity date.

Kenya also announced yesterday that the process is underway to extend the maturity of euro bonds due in 2024.

Earlier this year, Kenya had appointed a group of banks and financial institutions to arrange a syndicated loan worth $500 million in two tranches: the first with a 3-year maturity and the second with a 5-year maturity.

This arrangement was disclosed in a statement by Standard Chartered Kenya on July 6th, 2023.

Bloomberg news agency reported that Citibank, Rand Merchant Bank, Standard Bank of South Africa, and Standard Chartered Bank were entrusted by Kenya to organize the loan.

The African Export-Import Bank also participated in the loan as the lead arranger for the longer-term tranche.

Kenya intends to utilize the loan to finance various development projects.

In May of last year, Kenya's Treasury Minister Njogu Ndung'u had stated that the government received over 300 proposals regarding the management of international bonds worth $1 billion, due for repayment in the coming year.