This archive report was first published on 20 August 2019.
On August 20, 2019, Kenya terminated a $207.4 million loan deal with the World Bank for road upgrades following delays in project execution.
The loan deal, signed in 2012, involved the World Bank providing $300 million and the Treasury topping up $113 million for roads upgrades in Nairobi and other urban centers.
According to the World Bank, Kenya requested to cancel the undisbursed amount of the credit via a letter dated December 21, 2018.
The cancellation of the loan deal is a departure from the Treasury's recent trend of borrowing, which has drawn criticism over the country's increasing debt.
Kenya's public debt as a percentage of gross domestic product has increased to 55 percent from 42 percent when President Uhuru Kenyatta took office in 2013.
The Government has defended the increased borrowing, saying the country must invest in its roads and railways.
