The National Treasury has detailed the loans and grants it intends to take to fund various projects in President Uhuru Kenyatta’s final budget.
In the 2022/2023 budget forecasts of development expenditure as seen by Kenyans.co.keJapan has been revealed to be Kenya’s biggest lender in the fiscal year which starts July 1.
The government appropriates that it will receive Ksh31,110,167,854 from the government of Japan.
Treasury Cabinet Secretary Ukur Yatani poses for a photo with the famous budget briefcase outside the Parliament Buildings on Thursday, April 7, 2022.
Kenya’s second largest lender will be the Chinese government, which is expected to lend the country Ksh 29,459,000,000 while France is appropriated to finance the budget of over Ksh 3 trillion with a loan of Ksh 23,363,935,788.
Other loans that Kenya will take from other countries include; Belgium (4,561,124,881 Ksh), South Korea (3,686,000,000 Ksh), Spain (2,656,000,000 Ksh), Denmark (1,549,929,500 Ksh) and Sweden (1,077,731,000 Ksh).
In addition, the Treasury revealed that the loans will finance various projects undertaken in various government departments and state departments.
Of the 31 billion Japanese shillings, 17 billion shillings will go to the State Department of Infrastructure under the Ministry of Transport, while the Ministry of Energy will receive a share of more than 9 billion shillings.
Apart from loans from foreign governments, Kenya will also seek funding from global financial institutions.
According to estimates, it has been revealed that the government will borrow more than Ksh 100 billion from the World Bank and the International Monetary Fund (IMF).
Notably, the Treasury did not disclose the interest at which the loans will be offered. However, when presenting the 2022/2023 budget to parliament on April 7, Treasury CS Ukur Yatani said the government was opting for low-interest loans.
“Kenya’s debt carrying capacity is rated moderate and overall public debt is sustainable. We have initiated the implementation of a set of measures aimed at reducing costs and risks in the public debt portfolio.
“Preferred debt financings are highly concessional loans offered at below-market interest rates with long repayment periods. Reliance on commercial debt has been kept to minimal levels,” he said. .
Here is a list of the top 10 loans Kenya will get from these foreign countries;
1. Japan – 31,110,167,854 Ksh
2. China – 29,459,000,000 Ksh
3. France – Kshs 23,363,935,788
4. Germany – 14,423,512,807 Ksh
5. Italy – 6,065,700,000 Ksh
6. Belgium – 4,561,124,881 Ksh
7. South Korea – 3,686,000,000 Ksh
8. Spain – 2,656,000,000 Ksh
9. Denmark – 1,549,929,500 Ksh
10. Sweden – 1,077,731,000 Ksh
World Bank offices in Washington DC, USA.