Ruto takes eight loans amounting to KES 43.4 billion in four months
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Ruto takes eight loans amounting to KES 43.4 billion in four months; that will be repaid between 2030 and 2047
Ruto takes eight loans amounting to KES 43.4 billion in four months; that will be repaid between 2030 and 2047.
Ruto’s administration has contracted eight fresh loans worth KES 43.4 billion between September and December last year.
The loans will be repaid between 2030 and 2047, according to the Treasury.
“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,” Njuguna Ndungu, the Treasury Cabinet Secretary said in a brief to MPs.
The government wants to retire short-term, expensive loans that have increased Kenya’s cost of debt payment by using concessional loans.
The loans will fund projects such as water supply, food and nutrition security, maternal health, informal sector improvements, and small and medium enterprises (MSMEs).
The Public Financial Management Act mandates that the Treasury provide a quarterly report to Parliament on any loans that the national government has taken out.
The Treasury borrowed Sh16.7 billion from the International Development Association to increase the sustainability access and management of groundwater in the Horn of Africa’s borderlands.
“The loan will be repaid in 40 equal semi-annual repayments. The interest rate of the loan is 1.25 percent per annum and the service charge is 0.75 percent per annum on the withdrawn credit balance,” the Treasury said.
The government also borrowed Sh2.7 billion from Mizuho Bank Europe NV that will be used for Turnkey medical equipment and refurbishment package contracts to upgrade maternal and newborn units of 20 sites.
“The purpose of the loan is to finance amounts payable to the exporter under the Export Contract in respect of eligible goods and services,” the Treasury documents state.
A further Sh5 billion will go towards building resilience for food and nutrition security in Djibouti, Kenya, Somalia, and South Sudan.
The money, to be paid over 30 years, was secured from the African Development Fund.
The Treasury further signed a KSh2.5 billion loan from the Federal Republic of Germany to finance goods and services to improve waste and water management in Kisii and Kericho counties.
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“The loan will be repaid in 60 equal semi-annual installments of EURO 300 000 from 15th May 2033 to November 15, 2062,” the report states.
“The interest rate of the loan is 0.75 percent per annum on the disbursed loan amounts. The commitment charge rate is 0.25 percent per annum on undisbursed loans.”
Kenya also signed a KSh2.59 billion with the International Fund for Agricultural Development (IFAD) to deepen rural financial inclusion and green investments.
The purpose of the loan is to create equitable employment opportunities, and innovative and resilient production systems as well as increase incomes for smallholders, poor and marginalized rural households, women, and youths.
Kenya also took in loans from Germany (Sh7.8 billion) and France (Sh6.2 billion) to help establish a centre for entrepreneurship including satellites together with an integrated voucher system and primarily to pay the foreign exchange costs.
The money secured from the Agence Francaise De Development will support the second Kenya Informal settlements improvement project.
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