Nairobi, April 23 -- Kenya has opted out of fully drawing a Sh193.8 billion ($1.5 billion) loan facility from the United Arab Emirates (UAE) due to its high pricing.

An official from the Treasury has indicated that the financing facility is now out of the picture, due to high costs as the country sees the scope for cheaper funds from institutions such as the World Bank.

Kenya already drew Sh64.6 billion ($500 million) from the facility in the last financial year but will now sit out of unlocking the Sh129.2 billion ($1 billion) balance.

The country reached an agreement with the UAE for the seven-year facility which is priced at an 8.25 percent interest rate and accessed a part of the funds in April 2025, amid prevailing high interest r...