Kenya has managed to get a Sh70.4 billion syndicated loan from a consortium of global lenders with the amount set to fund development projects sanctioned in the last fiscal year.

The five international lenders say part of the $500 million debt will be disbursed in two years and the rest the next three years, according to a statement released on Thursday.

Details on the interest the syndicated loan will attract and the other loan terms given to the Kenya government for the repayment are yet to be made public amid a rising debt portfolio.

“The proceeds from the facility will be used by the National Treasury to finance the development projects as per the development budget approved by the Kenyan Parliament for the Fiscal Year 2022/2023,” said the consortium of lenders.

In March, the National Treasury tasked CitiGroup (US), Standard Chartered Bank (UK) as well as Standard Bank and Rand Merchant Bank from South Africa to seek plan a $600 million loan.

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This comes in the face of a tough international credit market due to high interest rates and as the government grapples with pending bills of Sh537.2 billion, at the end of March 2023.

Kenya initially sought $600 million and later even invited Africa Export-Import Bank (Afrexim Bank) with almost two thirds targeted for the current financial year but $500 million only.