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Kenya pays Sh19bn over eight years for loans tapped but not used
A commitment fee secures a lender's promise to provide the credit line on the agreed terms at specific dates, regardless of the conditions of the financial markets.
Kenya paid Sh18.9 billion in loan commitment fees over eight years, mirroring the financial burden of non-disbursed committed loans.
A commitment fee is a payment that is charged by a lender to a borrower to compensate the lender for keeping a credit line open. The fee also secures a lender's promise to provide the credit line on the agreed terms at specific dates, regardless of the conditions of the financial markets.
