Kenya Secures $1.5 Billion Loan from UAE

Kenya's tea export earnings surged by 18% in the first half of 2024, reaching Ksh102.4 billion due to increased shipments to key markets including Pakistan, Egypt, and the newly opened trade center in China. Meanwhile, President William Ruto's administration is negotiating a Ksh193 billion ($1.5 billion) loan from the UAE, to address a widening budget deficit currently at 4.3% of GDP, alongside delays from an IMF disbursement. The loan carries an interest rate of about 8.2%, reflecting Kenya's struggle for financial support after protests forced the government to withdraw planned tax hikes. Additionally, the government has secured Ksh7.6 billion to fund the Outer Ring Road Bus Rapid Transit project, aimed at alleviating traffic congestion in Nairobi, with construction set to start in January 2025. These developments illustrate Kenya's ongoing economic challenges and the government's efforts to stabilize the situation through international loans and infrastructure projects.