When will borrowing binge stop as Kenya mulls Sh150bn loan?

Kenya has accumulated too many expensive commercial loans in our external debt register within a very short period. PHOTO | FILE

What you need to know:

  • The National Treasury put up a circular asking all commercial parastatals to surrender all excess cash they are holding in their bank accounts.
  • Kenya’s budget has very few opportunities for cuts because a disproportionate share of resources must go to salaries, pensions and debt service.

A source of mine from the financial sector has just shared with me a draft term sheet that the National Treasury has circulated to international commercial banks inviting participation in a new syndicated loan that the government is apparently planning to take.

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