Kenya in talks with the World Bank for a whopping $1 billion in new loan


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Kenya in talks with the World Bank for a whopping $1 billion in new loan

Kenya, the debt-laden East-African nation having Indian Ocean coastlines ranked at 22nd-largest economy in the African continent among 47 as of December 31st, 2019, had been in an advanced stage talk with the World Bank for “a” fairly priced loan of up to $991.75 million or 100 billion Kenyan shillings, nearly half of the heavily agriculture-depended nation’s external funding required over this fiscal year, a senior Kenyan Treasury official had unveiled on Friday, the 17th of January 2020.

In point of fact, latest move of the crisis-struck eastern-African nation which has been experiencing a better political stability over the recent past came forth as the African nation with a modest growth of rate of just below-5 per cent had been aiming to slash its growing debt-piles stemmed from overseas capital market including Eurobond offerings, a slew of syndicated commercial loans alongside a package of Chinese debts as well.

Meanwhile, on condition of anonymity, a source directly briefed over the ongoing talks, was quoted saying on Saturday (January 18th) that the Washington DC-based lender for emerging alongside developing nations could exercise a similar approach as it had done last year, bypassing projects and proffering the funds directly in to the Kenyan treasury, while Kenya’s Principal Secretary in the Ministry of Finance, Julius Muia said on Saturday (January 18th) that amount of fund would depend on how much the borrower could put together from its own funders adding a World Bank loan would be much cheaper than commercial debts which still remained as a sting in the throat for the Kenyan economy following last year’s borrowing binge.