UHURU continues borrowing spree as he seeks fresh Ksh82 billion loan from World Bank after IMF before going for another Sh780 billion Eurobond loan

 

Friday, April 9, 2021 – President Uhuru Kenyatta’s appetite for loans is not ending any time soon despite concerns from Kenyans over the spiraling debt burden.

Through the National Treasury Ministry, Uhuru’s government is in advanced talks with the World Bank for a Ksh82 billion loan just two days after an uproar over the Sk255 billion International Monetary Fund (IMF) loan.

In a statement, Treasury CS Ukur Yattani noted that the loan, under the World Bank Development Policy Operations (DPO), was necessary to cover the budget deficit.

The talks are expected to be completed and the funds disbursed by June 2021.

“Kenyan ministries, departments and agencies (MDAs) have delivered all prior actions for consideration by the World Bank under DPO III,” read a statement from Yattani.

He further noted that once approved, the loan would be used to deliver inclusive growth in four sectors.

They include promoting transparent spending, unlocking public-private partnerships (PPPs), enhancing revenues, and strengthening debt management.

This comes even as it emerged that after the Sh255 billion loan from IMF that got Kenyans infuriated, Uhuru also plans to take another Eurobond worth a whopping Sh780 billion.

Kenya’s foreign debt has since crossed Ksh10 trillion with experts warning that the country’s debt sustainability is crossing the red line. 

E! News Blog