Treasury takes new eight-year loan to pay Sh77bn debt

Treasury secretary Henry Rotich. file photo | nmg

The Treasury has taken up a new and expensive Sh77 billion ($750 million) commercial loan to pay a syndicated loan of a similar amount, whose October maturity was extended by six months, according to a new report submitted to Parliament.

The eight-year loan comes with a steep interest of 6.7 percentage points above the prevailing six-month London Interbank Offer Rate (Libor).    

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