‘Continue Calling Me Zakayo’ – Ruto Explains Loan Stance as Kenya Pays Massive Interest
President William Ruto has reaffirmed his commitment to reducing borrowing despite the country’s financial difficulties.
During an engagement on Saturday, July 20, the Head of State stated that the country could no longer rely on loans for growth.
He stated that many people were urging the government to continue borrowing, and emphasized that he had to make the right decision for the country.
Ruto revealed that Kenya is currently paying Ksh1.1 trillion in loan interest, which he described as a worrying trend.
Ruto
— Village Ambassador🇰🇪 (@stephenmbuvi15) July 20, 2024
"I get into a lot of trouble when making big decisions. That is why we cannot continue to borrow. Today we pay Ksh1.1 T for interest and that is not even for principal.
There are people who say that we should continue to borrow. I can't. Let them continue calling me Zakayo
“I get into a lot of trouble when making big decisions. That is why we cannot continue to borrow. Today we pay Ksh1.1 trillion for interest and that is not even for principal.
“There are people who say that we should continue to borrow. I can’t. Let them continue calling me Zakayo,” he stated.
The Head of State added that Kenyans would reap the benefits of his unpopular decisions in due time.
“When history is written one day, it will vindicate those who make the right decisions,” he asserted.
Many Kenyans have expressed concern about the country’s outstanding debt. This was one of the concerns expressed during the ongoing protests.
Kenya’s outstanding debt was Ksh10.39 trillion on March 31.
Domestic debt totals Ksh5.235 trillion, with the majority owed to commercial lenders. On the other hand, external lenders are owed Ksh5.163 trillion.
Notably, the external debt portfolio decreased by Ksh490 billion during the first quarter of 2024. This was due to the shilling’s strengthening against the dollar.
“Debt owed to bilateral creditors decreased by Ksh116.49 billion and multilateral debt by Ksh244.60 billion. Commercial debt decreased by Ksh118.80 while publicly guaranteed external debt decreased by Ksh10.58 billion,” read the report in part.
Following the country’s recent protests, Ruto appointed a team to audit the outstanding debt.
Ruto tasked a team led by former IMF Director of Internal Audit, Nancy Onyango, with determining Kenya’s true debt position while also investigating how the borrowed funds were used.
“In the light of the current debt burden, the imperative for fiscal consolidation and the constrained fiscal space, recommend alternative sources of financing the country’s development needs in the short and medium term and any debt reorganization plan,” read the gazette notice in part.
The team is scheduled to report back in three months.
‘Continue Calling Me Zakayo’ – Ruto Explains Loan Stance as Kenya Pays Massive Interest
