Treasury’s Sh20bn KQ loan terms alarm MPs
Herbling David hdavid@ke.nationmedia.com

Kenyan taxpayers are facing the prospect of paying a Sh20 billion ($200 million) debt next year when a governmentbacked short-term loan advanced to national carrier Kenya Airways matures.

Members of Parliament have flagged the loan as a big risk to the stability of public finances as it has to be fully repaid in one lump sum.

The Treasury guaranteed the bailout funds, meaning taxpayers must foot the bill in the event that cash-starved KQ, as the airline is popularly known, defaults on the dollardenominated loan.

Cairo-based African ExportImport Bank provided the syndicated loan at an interest rate of 6.80 per cent per annum. It was hoped that KQ would be in a better position to pay the loan after the twoyear term but that is unlikely to happen given the slow pace at which the airline is recovering.

“This loan has a grace period of two years and will be due for payment in 2018 in one instalment,”

Budget committee chairman Mutava Musyimi says in a report submitted to the National Assembly.

“This payment of a huge amount of money at a go is likely to shock the financial pillars of the national budget.”

Treasury’s Sh20bn KQ loan terms alarm MPs
Herbling David hdavid@ke.nationmedia.com

Kenyan taxpayers are facing the prospect of paying a Sh20 billion ($200 million) debt next year when a governmentbacked short-term loan advanced to national carrier Kenya Airways matures.

Members of Parliament have flagged the loan as a big risk to the stability of public finances as it has to be fully repaid in one lump sum.

The Treasury guaranteed the bailout funds, meaning taxpayers must foot the bill in the event that cash-starved KQ, as the airline is popularly known, defaults on the dollardenominated loan.

Cairo-based African ExportImport Bank provided the syndicated loan at an interest rate of 6.80 per cent per annum. It was hoped that KQ would be in a better position to pay the loan after the twoyear term but that is unlikely to happen given the slow pace at which the airline is recovering.

“This loan has a grace period of two years and will be due for payment in 2018 in one instalment,”

Budget committee chairman Mutava Musyimi says in a report submitted to the National Assembly.

“This payment of a huge amount of money at a go is likely to shock the financial pillars of the national budget.”

Don't worry! We're expecting a miscarriage of this rally in couple of days from now. Relax and look for resources for substantial entry.

KES 6.2 being 7.8% up today in addition to the 9.4% rise registered yesterday.. 17.2% total rise in just 2 days.. The rally of a lifetime.. At KES 8, I will lighten and offload everything at KES 12.. @karasinga KES 4.2 shall not be seen in the near future @vvs @ericsson @sparkly we wait for March 5th