Treasury defends Sh77 billion loan cost for debt refinancing

Treasury secretary Henry Rotich. file photo | nmg

Treasury Cabinet Secretary Henry Rotich has defended the cost of the Sh77 billion commercial loan recently taken to offset a mature debt of an equal amount.

Mr Rotich said the decision to take the eight-year loan with the current steep interest of 6.7 percentage points above the prevailing six-month London Interbank Offer Rate (Libor) was benchmarked on the cost of what was trading back in October.

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