Concessional loans are loans that are given with more generous terms than the normal market. Concessional loans also known as Soft loans are given at interest free or very low interest rates with longer and flexible repayment terms.
Concessional loans in Kenya are usual issued by Development Finance Institutions and NGOs.
Examples of Concessional loans in Kenya
- Kenya World Bank loans
- Kenya IMF loans
- Kenya African Development Bank loans
- Kenya NGO loans
Concessional Loan Interest rates in Kenya
Though most Concessional loans given to Kenya are interest free ,those who charge interest charge very low interest rate , Example ; Kenya external Concessional loans from lenders such as World Bank are on an average of fixed interest rate of 1.75% with 35 year tenor and grace period of up to 10 years according to the Kenya Treasury Data.
Kenya Treasury data also shows that in this year through June 2022 Concessional loans wired to Kenya reached ksh 113.06 Billion with World Bank and IMF accounting up to 75% of that amount.
Kenya still have an access to about $433 million in financing once the new review by IMF Executive Board is passed.
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