Kenya Seeks $750 Million Loan From World Bank
London, May 28, 2019 (AltAfrica)-Kenya requested the World Bank for a $750 million loan to fund affordable housing, agriculture and other development projects amid concerns the East African nation is taking on too much debt.
It’s the first proposed so-called Development Policy Financing to support Kenya’s reform program to “further enhance economic growth and make it more inclusive,” the lender said on its website
Reuters says the World Bank declined to comment if the loan has been approved by its board.
Officials at the ministry of finance did not immediately respond to Reuters’ request for comments.
Kenya raised $2.1 billion in a sovereign bond this month, but some critics have expressed concerns over the country’s growing debt burden.
There has been a jump in government borrowing since President Uhuru Kenyatta came to power in 2013 – a rise that some politicians and economists say is saddling future generations with too much debt.
Kenya’s public debt as a percentage of gross domestic product (GDP) has increased to 55% from 42% when Kenyatta took over. The government has defended the increased borrowing, saying the country must invest in its infrastructure, including roads and railways.
Finance Minister Henry Rotich told Reuters earlier this month that he was aiming to bring down debt servicing costs in the next few years to 12-16%.