Ahmednasir slams Ruto over new KSh 240b Eurobond loan
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Lawyer Ahmednasir Abdullahi criticizes the latest loan taken by the administration of President William Ruto
Lawyer Ahmednasir Abdullahi criticizes the latest loan taken by the administration of President William Ruto.
Ahmednasir in a statement on Tuesday, February 13 questioned the rationale behind the $1.5 billion (KSh 241 billion) Eurobond loan.
The outspoken lawyer claims that although the administration of former president Uhuru Kenyatta got a similar loan facility, after ten years Kenyans had not seen much of a return on their investment.
Ahmednasir contended that Kenyans will be obligated to repay about $4 billion (KSh 600 billion) over the course of the next ten years due to the most recent loan from the Kenya Kwanza administration.
He made the argument that the nation’s progress would be hampered by the fact that 85% of its taxes would go toward loan repayment.
“H.E. UHURU’s initially borrowed $ 2 billion EURO BOND about 10 years ago. No one knows what or how it was used for. At best, it was used for recurrent expenditure. At worst, the usual thievery of the native. For the time being, let us ignore the allegations that $ 1 billion was deposited in foreign bank accounts and never reached the city in the sun.
Now, H.E. Ruto borrows another $ 2 billion to be repaid with higher interest 10 years down the road (kicking the can down the road). So, 10 years later, we will be out of pocket $4 billion and interest…surely where are we taking poor Kenya and her zombie natives? From this year, Kenya will spend 85% of its taxes on loan repayment…right time should I go back to Mandera?” Ahmednasir posed.
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His statement comes after Kenya successfully issued a $1.5 billion bond (about KSh 240 billion) at a new interest rate of 9.75% due in 2031.
The Eurobond loan will be repaid (amortized) in three equal installments in 2029, 2030, and 2031, resulting in a weighted average life of 6 years.
“Kenya received strong demand, with a high-quality order book exceeding $6 billion (KSh 957 billion), allowing for tighter pricing and an increased issuance compared to initial guidance,” said the National Treasury in a press release. The loan is expected to finance the ongoing exercise to buy back the 2014 $2 billion (KSh 321 billion) Eurobonds due in June this year.
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