The National Treasury has revealed that Kenya has received debt service relief from creditors in the country’s international sovereign bonds popularly known as Eurobonds and standard gauge railway financier China Exim Bank, helping save Sh16.8 billion in due interest payments.
The Budget and Appropriations Committee (BAC) says in its report on the supplementary budget for 2020/2021 that the deferred payments were due to the impact of Covid-19 on State revenue. This is the first indication by the government that the debt service relief extended to commercial lenders, having previously disclosed the suspension of repayments to bilateral lenders under the Paris Club.
