By Reuters

Kenya is negotiating a $1.5 billion (Ksh. 194.1B) commercial loan with the United Arab Emirates, which carries an 8.25% interest rate and a seven-year repayment period, Finance Minister John Mbadi said on Wednesday.

In late September, a source familiar with the matter told Reuters that the Kenyan government was nearing an agreement on the loan, which is intended to address the country’s financing shortfall.

“This loan is cheaper than the Eurobond we secured at a 10.7% interest rate,” Mbadi said during a news briefing, referring to the $1.5 billion bond issued in February to help repurchase part of a $2 billion Eurobond that matured in June.

Follow kenyaonline.xyz