Connect with us

Hi, what are you looking for?

Capital Business
Capital Business


Kenya Takes up Debt Service Suspension Initiative from the Paris Club

NAIROBI , Kenya, Jan 12- Kenya has successfully applied for the debt service suspension initiative from the Paris club, according to Treasury Cabinet Secretary Ukur Yatani.

“The Paris Club has accepted Kenya’s application for debt service suspension, which now means that Sh32.9 billion of Kenya’s foreign debt owed to 10 bilateral partners under the Paris Club, falling due from 1st January 2021 to 30th June, 2021,” the CS said in a statement.

The country has already signed a Memorandum of Understanding (MoU) with the Paris Club, to be followed by individual MoUs which each country under the Club, covering the terms of payment post-30th June, 2021.

“In effect, the initiative apart from suspending the payments, will give us a total of five years to repay the loans, with a grace period of one year. This is not only timely, but a sign of confidence in the country and will give us the fiscal space to make the much-needed spending on the COVID-19 economic recovery strategy especially in the social,
health and economic sectors,” Yatani added.

At the same time, Kenya has also applied for debt service suspension under the G-20 DSSI framework, for amounts estimated at Sh40.6 billion due from 1st January, 2021 to 30th June, 2021, from non-Paris Club bilateral creditors.

The formal approval is expected in the
coming weeks.

According to the Treasury, the country will not seek debt service suspension from both its multilateral and commercial creditors, to safeguard its sovereign rating and its future access to international financial markets.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...