Completed Development AidData Chinese Aid

China Development Bank provides $600 million loan to finance the Kenyan Government's budget deficit

$600K USD

Funder	China Development Bank (CDB)
Recipient Organization	Government of Kenya
Country	Kenya
Start Date	May 20, 2016
End Date	Apr 09, 2029
Duration	4,707 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`58956`

Grant Description

China Development Bank provides $600 million loan to finance the Kenyan Government's budget deficit On May 20, 2016, China Development Bank provided a $600 million loan to finance the Kenyan Government's budget deficit. The loan carried an interest rate of 6-month LIBOR plus 495 basis points (4.95%).

📋 Loan / Grant Terms

💰 Loan Amountin semi-annual installments between November 20

The proceeds of the loan were to be used by the borrower help fund the government’s budget deficit in Fiscal Year 2015/16-year. The loan fully disbursed.

The borrower made principal repayments worth $75,000,000 between July 1, 2020 and June 30, 2021 (Fiscal Year 2020-2021) and $162,500,000 between July 1, 2021 and June 30, 2021 (Fiscal Year 2021-2022).

The loan’s amount outstanding was $412,500,000 as of June 30, 2020, $337,500,000 as of June 30, 2021, and $175,000,000 as of June 30, 2022. In May 2023, the Kenyan Treasury reported that the $600 million CDB repaid would be fully repaid by June 2023.

📋 Staff Comments

The loan identification number in the Government of Kenya’s public debt register is 2016038 (2016038_1).
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
The amounts outstanding and repayments data are drawn from the Kenyan Treasury’s External Public Debt Register. See https://www.dropbox.com/s/549ixt2gj1jbjvi/External-Public-Debt-Register-as-at-End-June-2022.pdf?dl=0 and https://www.dropbox.com/s/0et4jg1qfg1bo7r/External-Public-Debt-Register-as-at-End-June-2021.pdf?dl=0 and https://www.dropbox.com/s/233j706743q7f1g/External-Public-Debt-Register-as-at-End-June-2020.pdf?dl=0 and https://www.dropbox.com/s/qkoybr9ja0ohemy/External-Public-Debt-Register-as-at-End-June-2009.pdf?dl=0 and https://www.dropbox.com/s/thy3s6ggjcjd97z/External-Public-Debt-Register-as-at-End-June-2012.pdf?dl=0 and https://www.dropbox.com/s/fzbfq01vas6m0i9/External-Public-Debt-Register-as-at-End-June-2019.pdf?dl=0 and https://www.dropbox.com/s/ennrl6d4zd2nizs/External-Public-Debt-Register-as-at-End-June-2018.pdf?dl=0 and https://www.dropbox.com/s/8ibazrj1a8oho2d/External-Public-Debt-Register-as-at-End-June-2017.pdf?dl=0 and https://www.dropbox.com/s/wdbjl0wq49i09x1/External-Public-Debt-Register-as-at-End-June-2015.pdf?dl=0

📚 Sources & References

2017 Medium Term Debt Management Strategy for FY2017-18 - FY2019-20
Kenya secures $600 mln Chinese loan to support budget -IMF envoy
Central Bank of Kenya Quarterly Economic Review, 2016 Medium Term Debt Management Strategy
Kinyua stops parastatals from taking in new loans, 2016 ANNUAL REPORT AND FINANCIAL STATEMENTS, 2018 Government of Kenya Bond Prospectus
External-Public-Debt-Register-as-at-End-June-2020.pdf
The National Treasury Public Debt Management Office Summary Statement 2021/2022
SUMMARY STATEMENT OF PUBLIC DEBT FOR 2020/2021FY IN FOREIGN CURRENCY Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Government of Kenya

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