Hafez Ghanem, World Bank VP for Africa. World Bank has raised concerns on the productivity of projects that Kenya and other African countries are funding. FILE PHOTO | NMG
The World Bank has raised the red flag over the high cost at which Kenya and other African countries are borrowing commercial loans, warning of future repayment difficulties if the debts are not invested in productive projects.
The World Bank Vice-President for Africa Hafez Ghanem, in a wide-ranging exclusive interview with the Business Daily, indicated that Kenya’s debt level has not yet reached a tipping point but raises concerns over low-yielding investments that do not generate enough tax revenue to repay the loans.
