The World bank, through the International Monetary Fund, has refuted statements by Deputy President William Ruto following the massive debts that Kenya has.
According to the Deputy Head of State, the government is in a position to clear all the debts it has.
“Any borrowing is measured and we know that we have the capacity to pay and is in the interest of the country,” noted Ruto.
[caption caption="File image of President Uhuru Kenyatta and his deputy William Ruto"]
[/caption]
He also added: "The Government has planned infrastructure projects such as roads, rails, and energy infrastructure."
He further divulged that the government has already presented the accounts on the expenses spent by the government in the past financial year.
However, the International Monetary Fund (IMF) revealed that Kenya has already exhausted its Sh150 Billion precautionary facilities even as the government was recently in the US for the roadshow sourcing facility for the second Eurobond which was oversubscribed.
IMF equally raised concerns because the government has so far been unable to account for the proceeds of previous instruments.
In addition, IMF officials appeared before the Parliament's Budget and Appropriations Committee last week to explain the country's current debt predicament.
"What we are concerned about is the flow of new debt. The trajectory is going to a place where it will not be sustainable anymore and you will get in trouble eventually," stated the IMF representative to Kenya, Jan Mikkelsen.
They also highlighted that the Kenyan taxpayers are yet to see proceeds of the Sh201 Billion Eurobond issued in 2014 even as the initial portion of Sh75 Billion is due for repayment in the next four months.
Therefore, Kenya’s risk profile has significantly raised the interest payments on foreign denominated debt such as the recently floated bond.
[caption caption="File image of IMF representative to Kenya Jan Mikkelsen"]
[/caption]
