Opposition leader Raila Odinga on Tuesday, June 20, accused President William Ruto of borrowing Ksh213 billion in a span of 24 hours in the final days of the 2022/2023 Financial Year.
Odinga noted that the government borrowed Ksh213.4 billion barely ten days before the end of the financial year, a figure higher than that borrowed in the previous four months combined.
He observed that this borrowing was done in a secretive manner and that the government was yet to make public any details about how the money will be used.
"With the ongoing focus on the Finance Bill providing a perfect cover, the Kenya Kwanza administration has in recent days engaged in a suspicious spree of borrowing which the Azimio Coalition Party demands clarity on.
"In a single day last week, the Kenya Kwanza administration borrowed Ksh213.4 billion from local financial institutions. This debt has a number of curious and disturbing features," lamented Raila.
The opposition leader claimed that the money was borrowed at an extremely high-interest rate of 15.84 per cent, noting that the country will have to carry the burden of the loan he classified as unnecessary.
"This single borrowing is almost half the total approved annual domestic borrowing of Ksh438 billion for the year 2022-2023.
"Last week's borrowing of Ksh213.4 billion came despite the fact that the regime has been borrowing all year. In light of this weird move by Kenya Kwanza, Azimio La Umoja would like the administration to provide clarity" he demanded.
Odinga called on Ruto's government to explain the borrowing and to ensure that the money is used for legitimate purposes warning that the move could have a negative impact on the economy.
"Where is all this money going a week to the beginning of a new financial year? Kenyans deserve a full account. Why such massive borrowing just about a week to the end of the old financial year and the beginning of a new one? Can the regime consume Ksh213.4 billion in one week? What is the impact of this single borrowing on market liquidity? Why is the regime deliberately locking out the private sector from the credit market?
"The government having borrowed at 16 percent, the private sector, including small businesses, will end up paying very high-interest rates of 24 percent or more on their loans. Does the administration understand or care about the impact of this reckless borrowing at extremely high rates on businesses and individual Kenyans?" He questioned.
The Orange Democratic Movement (ODM) party leader also demanded to know why the Kenya Kwanza regime changed the size of a Ksh60 billion bond mid-stream.
"Can Kenya Kwanza point out the infrastructure projects that will be financed by the bond proceeds in one week?" He wondered
The government was yet to responded to Odinga's accusations.
Treasury Cabinet Secretary Njuguna Ndung'u had earlier, on June 14, explained that the borrowing was necessary to meet the country's financial obligations.
