Kenya seeks Sh77b syndicate loan in crisis borrowing

National Treasury PS Kamau Thugge [PHOTO. FILE/STANDARD]

NAIROBI: Kenya has raised about Sh80 billion through a syndicated loan from three commercial banks as it struggles with a cash crisis at home that has hit government expenditure.

The drastic decision was taken after borrowing rates on treasury bills crossed 20 per cent making it too expensive to borrow locally, Permanent Secretary in the National Treasury Kamau Thugge told Weekend Business yesterday. Standard Chartered, CFC Stanbic and Citi Bank have agreed to lend the State $750 million (Sh77.25 billion) to be released within two weeks and hopefully help in reducing interest rates locally.