Search
Monday 23 May 2022
  • :
  • :

Pressure on taxpayers as SGR loan falls due.

Kenya is gearing up for bigger loan repayments to China as a five-year grace period that Beijing extended to Nairobi for the standard gauge railway (SGR) funds ends. Repayment of the principal loan extended to Kenya for the first phase of the railway project kicks off next month, according to an agreement signed with the Exim Bank of China on May 11, 2014. This is expected to add to the growing load that the Treasury has to bear considering that it is already servicing interest charges on the loan. Treasury Secretary Henry Rotich however claimed that the repayment of the principal loan for the SGR would commence in January next year. Kenya signed a deal for a $3.233 billion loan (Sh324.01 billion) from China’s Exim Bank, comprised of $1.633 billion commercial loan and $1.6 billion concessional one to build a 385km modern railway between Mombasa and Nairobi.




Leave a Reply

Your email address will not be published. Required fields are marked *