Kenya is waiting to draw on a $1.5 billion UAE loan to better align with its fiscal budget. Following a surge in debt service costs, the country is in talks with the IMF about a new lending program. The government has also raised funds through a new 10-year bond, while evaluating its financial framework before accessing the UAE loan.
Kenya has decided to postpone accessing a $1.5 billion loan from the United Arab Emirates (UAE) while aligning it with its current budget plans, according to Finance Minister John Mbadi. The country has faced increasing debt service costs due to extensive borrowing and aims to stabilize its financial situation. Concurrently, discussions are ongoing with the International Monetary Fund (IMF) regarding a new lending program set to initiate after the current agreement expires in April.
In summary, Kenya is strategically delaying the drawdown of the UAE loan to ensure it fits within budgetary constraints, amidst rising debt concerns and ongoing negotiations with the IMF for future financial stability. The decision reflects careful fiscal management as the government evaluates its financial needs and other funding sources before proceeding with the UAE funds.
Original Source: eastleighvoice.co.ke
