Loans -Kenya Kwanza government is borrowing funds more than Uhuru Kenyatta’s government.
Just nine months into power, the William Ruto’s administration has already borrowed a sum of sh 1.2 trillion this being more than what Uhuru borrowed in his first year in office.
The Treasury details indicate that Uhuru took loans amounting to sh 437 billion during his first year in power and a further estimate of about sh 874 billion towards 2015.
Interestingly, Ruto’s new regime which promised to lower the appetite for foreign funding is reported to have already borrowed sh 419 billion and another sh 716.92 billion from abroad.
The government defends this move saying the increase in debt is to shore up government finances and help in paying for projects and salaries as well as boost the foreign reserves to protect the depreciating shilling.
The International Monetary Fund (IMF) has also approved Kenya’s latest request for a sh 142 billion loan bringing the total amount of money disbursed by the IMF to sh 229.73 billion in the last year.
The amount was Kenya’s largest loan from the IMF program, with the second-largest having been Ksh87.73 billion in December 2022 during the fourth review.
This is happening days after opposition brigade led by Raila Odinga disclosed that the current government was taking loans in secrecy instead of making public where the money was going.
Raila made this expose saying this was against the public Finance Act since every citizen has a right to know why its government was borrowing and spending taxes.
