A Treasury report submitted to the National Assembly reveals that President William Ruto took a whooping Ksh223 billion in loans from external lenders within five months.
According to the report dated February 27, the eleven loans were taken between the periods of September 2023 and January 2024 and are set to be repaid in several instalments with the last one repaid by 2053.
The loans were meant to improve financial support for different government projects and parastatals.
Kenya Power is among the parastatals that benefitted from the loans with the utility firm receiving capital injection to boost access to electricity.
The loans were also taken out to enable the government roll out projects geared at increasing employment, improving water supply and enhancing urban infrastructure development.
Section 31(3) of Public Finance Management Act requires that the Cabinet Secretary submit a report to Parliament stating the loan balances brought forward, carried down, drawings and amortizations on new loans obtained from outside Kenya or denominated in foreign currency.
The first loan was a Ksh5.8 billion facility which was taken in October 2023 to spur economic development in North Eastern.
The loan was issued by the OPEC Fund for international development.
Another loan amounting to Ksh14.2 billion was advanced in December 6, 2023 by the International Development Association (IDA).
The loan was earmarked for Youth Development projects across the country. This loan is expected to be repaid between 2029 and 2035.
On December 21, the government took another Ksh4.3 billion loan from IDA.
The facility was meant to finance water and security projects and enhance security in the country. The loan is expected to be repaid by 2053.
The government again borrowed Ksh28 billion which was channeled to Kenya Power with the aim of enhancing electricity supply in the country. This loan was taken on December 15 from the IDA.
Another Ksh36 billion was taken by the government to enhance public finance management.
The health sector also benefitted from a Ksh17 billion loan taken which was channeled to enhance emergency responses.
Ksh30 billion was taken from the Trade and Development Bank which was used partly used in refinancing the Ksh310 billion Eurobond maturing in June.
Additionally, Kenya took Ksh21 billion from International Development Association (IDA) for Kenya's urban support programme, the repayment is up to 2035.
