Fresh reports reveal that the national treasury has secured a sh 20 billion loan to help Kenya Airways repay another loan it acquired from African Export-Import Bank (Afrexim).
The pending loan owed to Afrexim was secured two years ago.
In a report presented to Parliament by the treasury, the new loan is stated to have been borrowed in June last year.
The Ksh20 billion loan has been borrowed from Eastern and Southern Africa Trade and Development Bank (TDB) and will replace a similar debt owed to Afrexim that is due.
According to the report, the loan will cost the government at least Ksh2 billion in interest expenses and other charges, as per the terms of the debt.
The Treasury document notes: “The loan was borrowed to re-finance and cancel the 2016 syndicated loan facility borrowed to support the turnaround process of Kenya Airways through the restructuring of its balance sheet.”
Recently, the former Kiambu Governor William Kabogo expressed concern with the way Henry Rotich keeps borrowing money he can’t
Kabogo stated that Rotich borrowed from Equity bank last year and failed to pay then he has gone ahead to borrow from the Commercial Bank Africa(CBA) to pay Equity which William is sure he will not be able to pay.
Do you agree that Rotich will not be able to pay back this loans?