Kenya Expected to Secure $1B Loan from China

Funds may be used to settle maturing Eurobond, amidst central bank's vow for stronger action on foreign exchange rate stability.

Kenya is likely to receive a $1 billion loan from China in this fiscal year.
The loan could be used to partly settle a Eurobond that is maturing next June.
The loan marks a shift in the Kenyan government's stance on Chinese lending.
The central bank has vowed to take stronger action to ensure the foreign exchange rate has stabilised.
The Monetary Policy Committee recently raised the benchmark lending rate by 2 percentage points.