Kenya paid Sh18.9 billion in loan commitment fees over the past eight years, reflecting the financial burden of undisbursed but committed loans.
A commitment fee is charged by lenders to borrowers as compensation for keeping a credit line open, ensuring the lender’s obligation to provide funds under agreed terms, regardless of market fluctuations.
In addition to these fees, taxpayers bore an extra Sh435 billion in servicing Kenya’s growing public debt, further straining the national budget.