The government targets to borrow more than Sh100 billion in the new fiscal year starting July to finance tens of projects, including solar power upgrades and climate resilience initiatives.
The more than 50 projects cutting across different sectors will see the government take Sh114.5 billion in loans from different countries and international lenders, the Budget Summary for 2024/25 shows.
The loans are expected to constitute 22 percent of the expected borrowing of Sh514.7 billion in 2024/25.
“Given the commitment to contain expenditures and boost revenues, fiscal deficit including grants is projected at Sh514.7 billion (2.9 percent of GDP) in the FY 2024/25,” the Treasury states in the Budget Summary.
Details from the Treasury show that among key projects to be financed using the loans in the coming fiscal year are Kenya-Off-Grid Solar Access Project for which Sh3 billion will be borrowed, Kenya Water Security and Climate Resilience Project (Sh2 billion) and Kenya Covid-19 Emergency Response Project (Sh1.5 billion).
The government in the fiscal year starting July also plans to borrow Sh7.9 billion for part construction of the Horn of Africa Gateway Development Project, Sh1 billion for the establishment of line five of the Bus Rapid Transit Project, Sh2 billion for the dualling of Thika-Kenol-Marua road and Sh1.072 billion for the supply of Forest Fire Fighting Equipment.
It will borrow from countries and international lending groups, including the European Development Fund, European Investment Bank, Global Fund, and Kuwait Fund for Arab Development.
