Report On All New Loans

TheNationalTreasury

GOVERNMENTOFKENYAFROM1ST SEPTEMBER2025TO31ST DECEMBER2025

PAPERS LAIB

DATE

Q020

TABLED EY

COMMITTEE

CLERK AT THE TABLE

REPORT TOPARLIAMENTONALLNEWLOANSCONTRACTED BYGOVERNMENTFROM1ST SEPTEMBER 2025TO31ST DECEMBER2025

Section 1-Introduction

This report on new loans is prepared in accordance with section 31 (3) of the Public Finance 2025.Section31(3) requires that"theCabinetSecretary shall submit a report toParliament statingtheloanbalancesbroughtforward,carrieddown,drawingsandamortizationsonnew informationasmaybeprescribedbyregulations,specifying—

• (a) the names of theparties to the loan;
• (b) theamount of theloan and thecurrency inwhichit is expressed and inwhich it is repayable;
• (c) theterms and conditionsof theloan,includinginterest andotherchargespayable and the terms of repayment;
• (d) theamountof theloanadvancedatthetimethereportissubmitted;
• e thepurposeforwhichtheloanwasusedandtheperceivedbenefitsoftheloan."

Section2-Detailsof thenewloans.

This section of the report contains 5 new loans contracted between Government of Kenya and,bilateral and commercial creditors.The total value of the 5 newloans signed is equivalent toKsh.240,221,538,213.One of the loans has been disbursed by the time of submitting this report.Theloansare asfollows:

1.Phase Ill on Establishment and upgradingof Equipment inTechnical &Educational training Workshops.

The parties to the loan

The loanwas signed on 23rdOctober 2025between theExport-lmportBank of China as the lender andGovernment of Kenya as theborrower.

lii.The amount of the loan and the currency

The amount of the loan is CNY 616,109,066.96 approximately equivalent to KSh. 11,595,172,640 and will be repaid in ChineseYuan.

The amount of the loan is EUR 38,000,000 approximately equivalent to KSh. 5,790,820,000andwillberepaidinEuro.

ili.Thetermsandconditionsof theloan

The loan will be repaidin two portions. Portion I will be paid in 5 equal instalments of EUR 276,000from15thNovember2031 through 15thNovember2033 and 60equal instalments of EUR277,000from15thMay2034throughto15thNovember2063.Thesecondportionwillbe paid in 43 equal instalments of EUR 392,000 from 15th November 2030 through to 15th November 2051 and 8 equal instalments of EUR393,000 from 15th May 2052 through to 15th amounts.The interestrate is 0.75percentper annumfor amountsdisbursedunderportionl and 1.20 percent per annum for amounts disbursed under Portion Il.

iv.Thepurposeoftheloan

To finance the liquidity support for MSMEs and consulting services to support the project implementation.

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ili. Thetermsandconditionsoftheloan

The loanwillbe repaid in30equal semi-annual repayments of CNY20,536,969from21st September 2030 through to 21st March 2045. The interest rate of the loan is 2 percent per annum, a one-time management fee of 0.25 per cent of the total value of the loan and commitmentfeeof0.25percent.

Thepurpose of theloan

To purchase goods, technology and other services.

2.DigitizationforTechnicalandVocational EducationandTraining(Promotionof Technical andVocational Education andTraining(TVET)and Empowerment Ill and Digitization of TVET)

The parties to the loan

Theloanwassignedon11thDecember2025betweenGovernmentoftheFederalRepublic of Germany asthelender andGovernment ofKenya astheborrower.

i.The amount of theloan and the currency

The amount of the loan is EUR 28,000,000 approximately equivalent to Kshs. 4,266,920,000andwillberepaid inEuro.

ii. Thetermsandconditionsoftheloan

Theloanwillberepaidintwoportions.PortionI willbepaid in64equal instalmentsof EUR 156,250from15thMay2032throughto15thNovember2063andsecondportionin50equal instalmentsof EUR360,000.00from15thMay2031toon15thNovember2055.The commitmentfeeis0.25percentperannumonundisbursedloanamounts.Theinterestrate is 0.75percentperannumforamountsdisbursedunderportionland1.20percentper annum for amounts disbursed under Portion Il.

iv. Thepurposeof theloan

To finance measures to support the Kenyan Government in the digitization for Technical and Vocational Education and Training.

3.International Sovereign Bond

Thepartiestotheloan

The bond was issued on 9th October 2025, between the Citi Group Global Markets Europe AG asthelenderandGovernmentof Kenya astheborrower.

iil. The amount of the loan and the currency

The amount of the bond is USD 1,500,000,000 approximately equivalent to KSh. 193,530,000,000andwillberepaidinUSDollar.

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i. Thetermsand conditionsof theloan

• iv. ThefirstnominalamountofUSD750,000,000willberepaid inthreeequalinstalments of USD250,000,000 from9thOctober2031to9thOctober2033.Theinterest rateis7.875 amount of USD 750,000,000 will be repaid in three equal instalments of USD 250,000,000from9thOctober2036to9thOctober2038.Theinterestrateis8.80percent per annumof theoutstandingprincipal amountof thenotes.

V. Thepurposeof thebond

To carry out liabilitymanagement operations and support thebudget.

4.Kenya Nairobi Intelligent Transport Systems (ITS) Establishment and Junction Improvement Project

i. Thepartiestotheloan

The loanwas signed on26thNovember2025betweenTheExport-lmport Bankof China as thelender andGovernment ofKenyaastheborrower.

ii. The amountof theloan and thecurrency

The amount of the loan is, CNY 1,330,426,438.50 approximately equivalent to KSh. 25,038,625,573andwillberepaid inChineseYuan.

il. Theterms and conditionsof theloan

The loanwillbe repaid in twenty-sevenequal instalmentsofCNY49,275,053.28.The interest rateapplicableshallbe2percentperannum.Managementfeeshallbe0.25percent,whereas commitmentfeeshallbe0.25percentperannum.

iv. Thepurposeof theloan

5.Supporting Access toFinance and Enterprise Recovery (SAFER)Project

i. The parties to the loan

Theloanwassignedon20thNovember2025betweenGovernmentof theFederalRepublic of Germany as thelender and Government of Kenya as theborrower.

ii. The amountof theloan and the currency

| Terms of repayment Interestrate | EEOZ 2033. ueo CNY amum of the outstanding principal | |-------------------------------------------------------------|-----------------------------------------------------------------------| | | inerest rate ofthe lanis 2 pcrcent ment fee is 0.25 percent. 区 seaks | | 5Years Z | 90061 Z | | FROM1STSEPTEMBER2025TO 31STDECEMBER2025 the period In (Ksh) | 0000000001 | | Disbursement (Foreign | Not Disbursed Not Disbursed | | Date | 0000000051 a | | EUR Curreney | USD AN 2881 | | | 000000000061 00000069 | | KshEqulvalent | 11,595,172,640.19 | | 000000000 junoue | 000000000051 616,109,066.96 28,000,000.00 OE | | Creditor 1for MSMEs and | GOKE o DVadomg | | Perceived benefits | To purchase goodstechnology and other pq uoddns implcmentation | | Access to Finance | Intermatiomal Sovereign Bond pue training Workshops B:EDUCATION | | Purpose of the Loan | |