Kenya secretly borrowed Covid-19 loan, U.S. reveals

United States has revealed that Kenya secretly borrowed Ksh139.5 billion loans from Belarusian and Canadian companies to cushion from Covid-19.

According to numerous reports, Kenya signed a secret loan deal in June 2020 with a Belarusian and Canadian company(s). The loan was meant to construct mobile clinics and improve hospitals in counties amid fears of rise in Covid-19 cases.

The United States Securities Exchange Commission (SEC) disclosed that the deal between the treasury and Canadian company, Kallo Inc., was for a loan of millions of shillings. SEC states that the money was meant to improve the health infrastructure of Kenya in order to battle Covid-19.

In addition, U.S. SEC indicates that the deal between the two was signed June last year, in the wake of Coronavirus.

Techno-Investment Module (TIM), a Belarus company, also provided finance for the project labeled, Kallo Integrated Delivery System (KIDS). However, the details of the loan and KIDS were not made public in Kenya.

Additionally, when the Treasury was brought to questioning over the matter, it said it required time before responding to questions.

Loan agreements

Reports also state that the loan is charged at 2% plus London Interbank Offered Rate that is currently at negative 0.4%.

During the negotiations concerning the loan, Kenya was given a grace period of three years but quarterly payment will begin in 2023.

Kenyans angered

A section of Kenyans are however angered by the loan. Some netizens stated on their social media that the government should probably sell the country already.

The loan Kenya secretly borrowed in 2020 is still a concern considering that the country is at a debt of billions of shillings but it still borrows in the name of Covid-19.