Kenya’s foreign bank loans increase 65pc in 12 months

Banking Central Bank of Kenya head office in Nairobi. FILE PHOTO | NMG

Commercial banks have overtaken the World Bank Group’s International Development Association as Kenya’s biggest external creditor, underlining the continued reliance on expensive commercial loans to bridge the budget deficit.

Fresh data released by the Central Bank of Kenya shows the government owed foreign commercial banks Sh594.1 billion by the end of March, a 65 per cent jump from Sh360.2 billion a year earlier.

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