NAIROBI, June 5 (Reuters) - Kenya’s Finance Ministry said it had received $240 million in the first tranche of a $600 million international syndicated loan to be used for supporting infrastructure projects in the 2011/12 (July-June) fiscal budget.
Treasury Permanent Secretary Joseph Kinyua said in a June 4 statement seen by Reuters on Tuesday that the remaining $360 million will be drawn down after one month.
“The Government will use the loan proceeds to finance ... road construction and rehabilitation, port dredging, irrigation programmes, and energy projects,” Kinyua said.
Last year, interest rates rose steeply, making it costly for the government to borrow from the domestic market, especially to fund its ambitious infrastructure development plans which are core to its economic growth. (Reporting by Kevin Mwanza, Writing by George Obulutsa)