Desperate for loans, Kenya offers highest returns in 7 years

GRAPHIC | CHRISPUS BARGORETT | NMG

The Kenyan government is increasingly borrowing more expensive loans from the domestic market in a trend that has set up households and businesses for a new season of costly loans.

The interest rate on a one-year Treasury bill, which sets the benchmark for determining interest rates charged on other borrowers, peaked at 12.452 percent in this week’s auction whose results were announced on Thursday, representing the highest rate since February 2016.

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Note: The results are not exact but very close to the actual.