Posted 4/8/2024, 5:00:00 AM
Kenya Pays Over Sh830 Million in Commitment Fees on Unused Loans in 2022, Costs Projected to Rise Further
- Commitment fees on unused Kenya external loans hit Sh833.85 million in Dec 2023, up from Sh680.3 million in Dec 2022
- Weak shilling drives up costs; fees could surpass Sh1.35 billion in 2023/24
- Borrowers pay commitment fees to lenders for making funds available before drawdown
- External debt servicing totaled Sh238.08 billion in Jul-Dec 2023 period
- Delays in absorbing borrowed loans causes fees to pile up due to poor project planning
