Kenya has paid at least Ksh1.657 billion to Japanese, Chinese and European banks in a bid to secure future loans, the Controller of Budget (COB) Margret Nyakango has revealed.
According to the revelations made before MP, the amount known as ‘commitment fees’ is aimed at securing future borrowing for projects such as the expansion of the Jomo Kenyatta International Airport (JKIA), construction of a dam to supplement water supply in Nairobi and road construction.
“We recommend that these loans should be cancelled and this will reduce the loan book balance and consequently save taxpayers payments on the commitment fees,” said Mrs Nyakango.
Ksh225.08 million has been paid to secure a loan for the construction of an underground power transmission line in Kileleshwa, Westlands, Parklands and Riverside.
The government also intends to construct a second runway at JKIA, and by June had paid Ksh21.447 million to secure funding through loans.
Ksh393.8 million has been paid to secure funding for the construction of an underground electricity transmission line to State House and Ngong Road.
Also, Ksh304.58 million has been paid as commitment fees for funding for the construction of phase two of the Ruiru dam.
This comes at a time the country is experiencing a ballooning debt burden, with Ksh1.169 trillion in the current financial year going to debt repayment.