Details have emerged of Sh139 Billion (1.06 billion euros) loan Treasury borrowed secretly in June last year, for upgrading county hospitals and step up the fight against Covid-19.
Details of Sh139 Billion loan Kenya borrowed secretly
The Covid-19 loan was to be used to upgrade hospitals in the counties last year
In a revelation done by the US Securities Exchange Commission, Kenya signed the loan deal with Canadian and Belarusian companies.
In a report by Business Daily, Belarus-based Techno-Investment Module (TIM) would provide financing for a project dubbed the Kallo Integrated Delivery System (KIDS).
Kallo Inc the Canadian company involved in the loan deal is said tp provide comprehensive healthcare infrastructure using mobile clinics and fixed hospitals supported by a global telehealth system.
“On June 26, 2020, the company finalised contracts with the Republic of Kenya and Techno-Investment Module Limited for a project contract and a finance contract. Under the terms of the agreement, Kenya is seeking to borrow the sum of 1,068,932,543 euros from TIM and the funds are to be used primarily to build phase one of a planned National Healthcare Infrastructure in the Republic of Kenya to be undertaken by Kallo Inc,” reads part of the SEC report.
Techno-Investment Module Ltd was expected to pay the loan to Kallo Inc once Kenya provided a guarantee.
The loan is a 20-year facility which it would start repaying after a 3-years grace period. The repayment was set to begin in 2023.
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