Treasury Cabinet Secretary Ukur Yatani has credited former President Uhuru Kenyatta for his ingenuity when taking loans during his second term in office.
Speaking to Citizen TV on Thursday, September 22, Yatani revealed that the former head of state opted not to take commercial loans in the second term as they were expensive.
He divulged that Uhuru's administration opted for multilateral loans that offered Kenya credit at a lower interest rate as compared to commercial loans.
Yatani added that the loans were sustainable and beneficial to citizens in the long run as they had better repayment plans.
"We borrow to realise development but we do it sustainably and for the last four years we have never borrowed commercially. When we borrowed, we borrowed from the multilateral widow where the average interest rate on 0.02 per cent and payable over 30/40 years. That is sustainable," he stated.
Yatani added that Uhuru also opted to reduce expenditure and generate more revenue which created more finances for projects that boosted the economy post the global pandemic period.
The CS also defended Uhuru against attacks from President William Ruto's allies who have often accused the former President of over-borrowing even as he explained that the loans were used for important economic projects.
Notably, he insisted that Kenya's debt - which is projected at Ksh8 trillion was manageable.
"We should not depict individuals or regimes in bad light. Let's counter-check this with the development that we have made for our people. Under the previous regime where I served and up to date, our means have been extremely good.
"Last year alone we had a GDP growth of 7.5 per cent which was the best in the last 15 years. Our revenue growth has passed the Ksh2 trillion mark. If you look at those parameters and the actual index of the economy, I am happy with it. How others want to view it, that is their own issue," he stated.
Yatani's statements barely come hours after Ruto pleaded with global financial institutions to restructure debts for countries that were most affected during the pandemic.
"On behalf of Kenya, therefore, I join other leaders in calling upon the World Bank, the International Monetary Fund and other multilateral lenders to extend pandemic-related debt relief to the worst-hit countries, especially those affected by the devastating combination of conflict, climate change and pandemic," the President stated during his inaugural speech at United Nations General Assembly (UNGA).
Ruto has been a fierce critic of Uhuru's borrowing policy in the last four years as he stated that the economy was performing poorly.
"We have a plan as Kenya Kwanza on how to manage debt. First, we will put brakes on borrowing and on unbudgeted projects because that is the big cause of our problems," Ruto stated during the presidential debate in July.
