Kenya World Bank Loan Repayments Will Span 30 Years

The World Bank has confirmed repayment details relating to a $750 million (Ksh75 billion) loan made to Kenya.

According to the bank, repayments for the concessional credit will run until 2059. Until repayments begin in 2024 taxpayers will pay a maximum of $15 million (Sh1.5 billion) each year in interest.

Currently more than half of Kenya’s taxes are committed to paying loans following a rise in government borrowing to fund various infrastructure projects. The country’s public debt rose from 42 per cent of Gross Domestic Product (GDP) in 2013 to 55 per cent.

The interest rate of the loan is significantly lower than that for the country’s latest Eurobond, which was secured last month at rates of seven and eight per cent for the two separate tranches.