The Chairperson of the Presidential Council of Economic Advisors, David Ndii, on Tuesday, April 2, addressed the controversy surrounding President William Ruto’s alleged Ksh631 billion loans.
Taking to his X account to respond to a social media post, Ndii issued a breakdown of how the government spent the money it secured from investors and the World Bank in the last three months.
Ndii was compelled to clarify the issue following allegations that the government secured Ksh631 billion in loans over the last three months.
The head of state was put on the spot for securing Ksh233 billion through the Eurobond and securing another Ksh240 billion through issuing Infrastructure Bonds.
Kenyans on social media were concerned with the reliance on debt to finance budgetary requirements a deviation from the campaign message presented by the ruling government.
Concerns were also raised following the government's move to borrow Ksh158 billion from the World Bank - an amount due for disbursement by April 30.
According to Ndii, Ksh230 billion received through the issuance of the new Eurobond went into buying back part of the Ksh310 billion Eurobond maturing in June.
In February this year, the government secured the Ksh230 billion funds which went directly into repaying the 2014 loan, with Kenya now left with the task of repaying the remaining Ksh80 billion to complete the repayment.
Ksh65 billion was used in repaying part of the loan that was secured to help in the construction of the Standard Guage Railways (SGR) with another Ksh65 billion pending repayment in July this year.
Ruto's economic advisor further claimed the remaining amount was used to retire the Ksh70 billion infrastructure bond issued by the government to fund infrastructure projects in the country.
A report submitted to the National Assembly on February 27, this year, revealed that President William Ruto's administration took a whooping Ksh223 billion in loans from external lenders within five months.
According to the report, 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 also taken out to enable the government to roll out projects geared at increasing employment, improving water supply and enhancing urban infrastructure development.
