The government would have avoided loan penalties of Sh55.8 billion it paid over three years to June 2022, had it addressed choking red tape within it and followed the law when borrowing to fund projects.
A special audit on external debt servicing between 2018/19 and 2021/22 fiscal years shows that out of Sh100 billion the Treasury spent settling some 90 loans, Sh55.8 billion was commitment fees charged by lenders for delays in drawing down loans and settlement of the debts, sometimes even after projects were completed.
