Treasury reported in its internal disclosures that the Sh1.312 billion fine was due to defaulting on the loan in the 2021/22 financial year that ended in June. “This (Sh1.312 billion) relates to the cost of default on interest at one per cent of the due amount,” the document reads in part. During the 2021/22 financial year, SGR recorded an operational loss of Sh3.4 billion after paying Sh22.7 billion in loan repayments. In August 2022, China locked Kenya out of a plan to waive debts owed by 17 countries. The government will have to dig deeper into the exchequer money to keep up with the SGR loan repayments.

Source: Daily Nation October 13, 2022 08:34 UTC