Treasury to borrow more locally in a bid to tame rising loan costs

Treasury Cabinet Secretary John Mbadi says external debt is prone to risks such as currency volatility. [File, Standard]

Households and businesses could be further squeezed out of credit as the National Treasury plans to crank up borrowing from local banks in coming years.

In its Medium Term Debt Strategy, Treasury said it plans to increase borrowing from domestic sources to 75 per cent and reduce borrowing from foreign lenders to 25 per cent, which could see banks reduce their appetite for lending to private sector.