President William Ruto has dismissed the warning issued by Moody's Investors Service regarding Kenya's debt repayment plan.
The credit rating firm had cautioned that Kenya could be flagged for default if it repays its Ksh282 billion Eurobond before maturity date.
In June, Ruto had announced the country's intention to buy back half of the bonds as part of its efforts to manage the ballooning public debt.
Despite Moody's cautionary note, the President stated he remains resolute in his plan to buy back the bonds before redemption date in June 2024.
During a church service held at Sagana State Lodge, President Ruto reiterated his determination to proceed with the plan.
“We have a Ksh282 billion loan that is maturing next year but we have said we cannot wait until then. In our budget, we have planned on reducing our debt,” the President stated.
In a bold statement, the President launched a scathing critique of Moody's, accusing the credit rating agency of opposing the government's move to buy back the Eurobond, suggesting that the agency had ulterior motives, hoping for Kenya to default so that investors could benefit from increased interest rates.
Ruto expressed a defiant stance, asserting that his administration had successfully formed alliances with supportive partners who would assist in clearing the loan ahead of schedule.
He added that going forward, foreign investors will not find loopholes to exploit Kenya. Moody’s had warned that Kenya was trying to beat the system by buying the bonds early at subpar prices.
The international firm warned Ruto that by doing so, he would be economically shortchanging foreign investors who bought the bonds that were floated by former President Uhuru Kenyatta’s government.
Ruto credited Treasury Cabinet Secretary Njuguna Ndung’u for coming up with what he described as a brilliant plan to save the country millions in debt repayment.
The Head of State further blamed his predecessor Uhuru Kenyatta for wanton borrowing that almost sunk the country into negative territory.
“Our first job was to stabilise the economy of our country. We had a crippling debt without a proper plan on how to service it,” the President noted.
