Kenyan National Treasury will rescue Consolidated Bank of Kenya Ltd. and help it repay holders of its 1.6 billion Kenyan shillings corporate bond, which was due in July, Business Daily Africa reported.

The bailout will be made in line with the lender's plan to extend the debt repayment period by three more months, the report said.

The lender in July said the bond was due to mature July 22 but it wants to extend it, under the same terms, to Oct. 22, with interest for the extended period.

Consolidated Bank is 85.8% state-owned.

As of Aug. 8, US$1 was equivalent to 103.30 Kenyan shillings.