• National Treasury Cabinet Secretary (CS) Njuguna Ndung’u revealed President William Ruto’s government borrowed eight new loans amounting to KSh 43.4 billion.
• The loans were contracted between September 1 and December 31, 2022, and will be repaid between 2030 and 2047
• The exchequer explained that the latest loans will be used to finance Micro Small and Medium Enterprises (MSMEs), maternal health, water projects, food and nutrition security

National Treasury Cabinet Secretary (CS) Njuguna Ndung’u has revealed President William Ruto’s government has borrowed eight new loans amounting to KSh 43.4 billion.

The loans were contracted between September 1 and December 31, 2022, and will be repaid between 2030 and 2047.

“The total value of the eight loans signed is equivalent to Sh43,381, 450,293. Two of the loans had been disbursed by the time of submitting this report,” the CS told MPs in a briefing as quoted by Business Daily.

Ruto has resorted to concessional loans to service short-term expensive loans as he tries to get Kenya out of the debt hole.

The exchequer explained that the latest loans will be used to finance Micro Small and Medium Enterprises (MSMEs), maternal health, water projects, food and nutrition security.

Creditors

Treasury revealed KSh 16.7 billion was borrowed from the International Development Association to be repaid in 40 equal semi-annual repayments at an interest rate of 1.25% per annum.

The exchequer noted KSh 2.7 billion was acquired as a loan from Mizuho Bank Europe NV for maternal health care.

A total of KSh 5 billion secured from the African Development Fund will be used for nutrition security and repaid over a period of 30 years.

Another KSh 2.5 billion loan was signed between Kenya and Germany to finance waste and water management in Kisii and Kericho counties.

The International Fund for Agricultural Development (IFAD) loaned Kenya KSh 2.59 billion to help smallholder farmers increase production.

Other loans were KSh 6.2 billion from France and KSh 7.8 billion from Germany.

Ruto to borrow KSh 76b from international banks

On Saturday, March 4, TUKO.co.ke reported President William Ruto’s government will borrow KSh 76.8 billion from international banks to plug the budget deficit.

The loans will be secured from CitiGroup, Rand Merchant Bank, Standard Chartered Bank and Standard Bank.

The syndicated loan is expected to hit the Central Bank of Kenya’s account in the next few weeks to also shore up foreign reserves.

Ruto borrowed KSh 137 billion in the first three months after he was sworn in despite the promise to cut debt reliance.

Source: TUKO.co.ke