UAE to disburse USD 1.5 bn loan to Kenya in single payment this week

The UAE poised to finalize USD 1.5 bn loan to Kenya: The UAE is set to distribute a USD 1.5 bn loan to Kenya in a single payment by the end of the week, Bloomberg reports, citing unnamed sources familiar with the matter. The loan marks a shift from earlier plans to stagger the loan in order to comply with the IMF’s USD 1.3 bn cap on commercial borrowing for the fiscal year.

Background: Kenya sought the financing from the UAE last year to reduce reliance on eurobonds, bilateral lenders like China, and multilateral institutions. The loan agreement follows a trade and investment agreement signed between the two countries in January.