Kenyans have been taken aback after reports submitted by the Treasury indicating Ruto’s 5 month loan will be paid by kenyans for thirty years to complete it.
According to the Treasury reports, President William Ruto took a whooping Ksh223 billion in loans from external lenders within a span of five months.
A total of eleven loans were taken by Kenya Kwanza administration between the periods of September 2023 and January 2024 and are set to be repaid in several instalments with the last one repaid by 2053.
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This means that within the year Ruto took the loan and the last installment to be repaid for the loan will see tax payers repay the loans taken for thirty years. A revelation that has angered a section of Kenyans.
The loans were also taken out to enable the government roll out projects geared at increasing employment, improving water supply and enhancing urban infrastructure development.
The first loan, issued by the OPEC Fund for international development, was a Ksh5.8 billion facility which was taken in October 2023 to spur economic development in North Eastern.
Another loan amounting to Ksh14.2 billion was advanced in December 6, 2023 by the International Development Association (IDA) meant for Youth Development projects across the country. This loan is expected to be repaid between 2029 and 2035.
In addition to these, Kenya Kwanza added another Ksh28 billion which was channeled to Kenya Power with the aim of enhancing electricity supply in the country. This loan was taken on December 15 from the IDA.
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Ksh36 billion and Ksh17 billion loans were taken by the government to enhance public finance management and enhance emergency responses respectively.
Additional Ksh30 billion was taken from the Trade and Development Bank which was used partly used in refinancing the Ksh310 billion Eurobond maturing in June.
Lastly, Ruto took an additional Ksh21 billion from International Development Association (IDA) for Kenya’s urban support programme, the repayment is up to 2035.