The United States Securities Exchange Commission (SEC) has revealed that Kenya took a secret 1.06 billion euros (Ksh139 billion) Covid-19 loan from Canadian and Belarusian companies.
The money was allegedly meant for building mobile clinics and the upgrading of hospitals in counties for fear of the rise in Covid-19 infections across the country.
Kenya entered the deal with the two companies in June 2020 amid the high Covid-19 cases in the country. At the time, President Uhuru Kenyatta had imposed tough measures to mitigate the pandemic.
File image of President Uhuru Kenyatta flanked by Health CS Mutahi Kagwe (left) and Interior CS Fred Matiang'i (center) during a past Covid-19 state address. |Photo| Courtesy|
In the deal, Belarusian company Techno Investment Module (TIM) financed a project dubbed Kallo Integrated Delivery System (KIDS), whose details remain unknown to the Kenyan public.
Kallo Inc states that KIDS provides comprehensive medical care through mobile and fixed clinics supported by a global telehealth system.
"On June 26, 2020, the company finalised contracts with the Republic of Kenya and Techno Investment Module for a project contract and a finance project," the SEC stated on March 3, 2021.
"Under the terms of the agreement Kenya is seeking to borrow 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," SEC revealed.
The loan is a 20-year facility charged a rate of 2 percent plus libor ( London Interbank Offered Rate) which is charged at negative 0.4 percent.
Kenya was granted a three-year grace period before starting to make quarterly repayments from 2023.
TIM was to pay the loan directly to Kallo Inc once Kenya issued a guarantee.
File image of President Uhuru Kenyatta during a Covid-19 state address in 2020. |Photo| Courtesy|