UAE’s Loan to Plug Kenya’s Budget Deficit
Kenya will receive a $1.5 billion loan from the United Arab Emirates (UAE) by the end of next week, according to sources familiar with the matter. The funding aims to bridge Kenya’s budget deficit, expanded after the government abandoned its planned rate hike due to public protests. The loan, at an interest rate of 8.2%, is part of Kenya’s diversified financing source strategy. Finance Minister John Mbadi stressed that the loan yielded 10.7% compared to early issue of European bonds. However, the IMF expressed concerns about the potential risks associated with the dollar-denominated external loans. This development also reflects the link between Kenya and the UAE under President William Ruto’s administration.
source: Bloomberg
