Kenya obtained 15 loans from China Development Bank, making it the main source of the cumulative KSh 68.7 billion the government borrowed from external bilateral and commercial lenders, between September and December last year.
- A significant chunk of the financing from China Development Bank will be used to upgrade/maintain roads such as a KSh 1bn loan to improve Cess (Nghonji) Rekeke Lake Jipe Road in Taita Taveta County, which will be repaid in 8 instalments from October 15 2027.
- The financing from bilateral lenders Germany, France and Italy will be used in setting up a National System Control Center of Electricity Grid, reforms, and to support a sustainable development budget.
- According to CBK statistics, Kenya owed a total of KSh 10.79 trillion by September 2024, almost evenly divided between domestic debt and publicly guaranteed external debt.
According to a report submitted to parliament on new loans, Kenya signed a Ksh 20.3 billion loan with Italy in October 2024 to support the sustainable development of the economy with reduced greenhouse gas emissions and achievement of climate targets. The loan will be repaid in 27 equal consecutive instalments from December 2032 to 2045.
Another loan agreement of Ksh 8 billion signed between Kenya and Germany will be used to finance reform oriented expenditure on the Kenyan budget to promote transition to a more resilient greener and more inclusive economy.
The KSh 4.6billion loan signed with France will be repaid in 30 equal successive half-year instalments of Eur 1,139,391 from July 2030 through to January 2045. The loan will be used to finance the construction of national system control centre that is also resilient to physical and cyber security challenges.
Kenya’s 2025 debt management strategy seeks to reduce the stock of Treasury bills, lengthen maturity periods, and deepen the domestic market. This would see a 25%/75% split in gross borrowing from external and domestic sources.
