The interest charges on listed brewer EABL’s shilling denominated loans went up by up to five percentage points in the year to June 2024, reflecting the sharp rise in the 182-day Treasury bill rate on which the loans are pegged.
Companies have identified higher financing costs as a major concern this year, with the EABL loans rate increase highlighting the impact of the government’s willingness to pay more for domestic debt to plug its budget deficit.
