A recent treasury report in the National Assembly has revealed that President Ruto’s administration acquired external loans amounting to Ksh 68 billion between September and December last year.
According to the report, most of these loans were taken to bridge the budget deficit and facilitate infrastructure development in the country.
The largest loan the government acquired was a credit facility from Italy worth Ksh20 billion.
Report reveals Ruto’s government has borrowed Ksh 68B in 3 months. Photo: Courtesy.
The main purpose of the loan was to help Kenya achieve its climate action goals and reduce greenhouse gas emissions.
The loan was acquired on October 14 and is set to be repaid in 27 installments, with the last tranche due in 2045.
This was the second-largest credit the government acquired was a Ksh 8 billion loan from the government of Germany.
The purpose of the loan was to help the country transition to a greener and more inclusive economy.
It is expected to be repaid in 27 equal installments from November 15, 2029, to November 15, 2042.
On October 3, the government acquired its third-largest loan, worth Ksh 4.8 billion, from the French Government.
It was acquired to finance the construction of a stable national system control centre that is also resilient to physical and cybersecurity challenges.
The credit facility is set to be repaid in 30 equal installments from July 15, 2030, to January 15, 2045.
The fourth one was from China Development Bank worth 4.5 billion and it’s set to be repaid in eight installments.
During the same period, the government also took another Ksh3.9 billion loan from the China Development Bank.
The loan, which is set to be repaid in installments from 2027 to 2031, was meant for the construction of roads in the country.
The same bank also granted Kenya another loan worth Ksh2.79 billion, with an annual interest rate of 4.0 per cent Like the other loans and the funds were allocated for road construction.
