A syndicate composed of Citibank, Standard Chartered Bank, Stanbic Bank, and RMB Holdings Ltd has provided the Kenyan government with $500 million in response to its request for $600 million.

The loan was confirmed by Haron Sirma, the director-in-charge of debt management at the National Treasury.

Sirma stated that the remaining balance would be received before the end of June, if no alternative financing is obtained.

While commercial loans are not the preferred source of debt, the government is exploring other financing options.

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The loan announcement coincided with the World Bank’s decision to grant Kenya an additional $1.5 billion from foreign lenders in May.

The funds are part of the $2 billion sought by the National Treasury between May and June to address financial challenges, stabilize the currency, and boost foreign exchange reserves.

The loan is expected to alleviate the US dollar shortage, support ongoing budgetary gaps, and reduce debt vulnerabilities.

Kenya’s total national debt currently stands at Ksh9.39 trillion ($68.04 billion), with Ksh4.53 trillion ($32.82 billion) in domestic debt and Ksh4.85 trillion ($35.14 billion) in external debt.

However, the present debt cap of Ksh10 trillion ($72.46 billion) limits the country’s borrowing capacity.

Kenya is also awaiting an additional $410 million from the IMF in July, pending approval of the accord on economic policies and reforms.