Kenya Secures $1.5 Billion UAE Loan in Tranches

Kenya's government will stagger the disbursement of a $1.5 billion loan from the UAE to comply with International Monetary Fund (IMF) borrowing limits, receiving Ksh90 billion in January 2025, with further amounts contingent on UAE's funding availability. Concerns from the IMF about exposure to foreign exchange risks have prompted this cautious approach, as the loan exceeds Kenya's commercial borrowing ceiling. Additionally, Kenya has secured a $200 million loan from the African Development Bank and is negotiating a $750 million loan with the World Bank, which is linked to the country's recent IMF funding approvals. These financial maneuvers come in the wake of protests that forced the government to abandon tax hikes worth over $2.68 billion. The Finance Ministry has set a foreign borrowing target of Ksh168 billion for the fiscal year ending June 2025, reflecting the government's ongoing struggle with heavy debt.