Markets & Finance

Kenya to conclude talks on Sh77b syndicated loan

Kenya is about to conclude talks on taking out a Sh77 billion ($750 million) syndicated loan, and the proceeds are expected to be received in the next two weeks, a senior Finance Ministry official said on Friday.

National Treasury Principal Secretary Kamau Thugge said he also expected local interest rates, which have surged in recent weeks, to start easing.

The Treasury faces a shortage of cash to meet its obligations with counties saying they don't have money to pay workers.

READ: Low revenues, high interest rates behind State cash crunch

Also read: Treasury unable to repay its loans

The cash crisis has affected the 47 counties, release of cash for the free primary education and secondary school education funds as well as the National Assembly—with MPs salaries and those of their staff delayed.

The Constituency Development Fund, rural electricity connection and some commissions including the Independent Electoral and Boundaries Commission (IEBC) have also been affected by the cash crunch.

READ: Foreign bank loans triple