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Kenya has just received Sh60b loan from three banks

Kenya has received a Sh60 billion syndicated loan from Citi, Standard Bank and Standard Chartered Bank.

The three banks announced the signing of the US$600,000,000 (Sh60 billion) “syndicated medium term loan facility” with the Kenyan government Tuesday morning in an emailed statement.

FULLY FINANCED

The loan, which has a two year tenor, has been fully financed by the three banks.

The lenders said the loan was launched into general syndication to international financial institutions on Thursday, October 29, 2015.

“The Facility is the National Treasury’s second international syndicated loan financing,” read a statement sent on behalf of the banks by HK Strategies, a public relations firm.

“The proceeds from the Facility will be used by the National Treasury to fund costs approved by Parliament in the Fiscal Year 2015/16, including infrastructure development projects in the road, energy, agriculture and water sectors.”

EUROBOND MONEY

News of the new loan will likely irk members of the public who are still questioning how the government spent more than Sh200 billion Eurobond money.

It is telling that the statement came from the banks and not the Treasury.

According to National Treasury Secretary Henry Rotich, Sh52 billion was used to pay a syndicated loan while the rest was shared among ministries to implement various projects.

For starters, a syndicated loan is a loan extended to a single customer by multiple financial institutions, which are formed into a group for that purpose.